THE  LIBRARY 

OF 

THE  UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


Developing  Executive 
Ability 


By 

ENOCH  BURTON  GOWIN 

Assistant  Professor  of  Commerce,  New  York  University  School  of 
Commerce,  Accounts  and  {•"inance;  Secretary,  The  Executives'  Club 
of  New  York;  Chairman,  Committee  on  Executive  Training,  National 
Association  of  Corporation  Schools;  Author,  "The  Executive  and  His 
Control  of  Men,"  "The  Selection  and  Training  of  the  Business 
Executive,"  etc. 


{Second  Printing) 


NEW  YORK 

THE  RONALD  PRESS  COMPANY 
1919 


Copyright,  1919,  by 
The  Ronald  Press  Company 


Bus.  Adxus. 
Lib. 

Hf 

SSOO 

G74cL 


To  Members  of 

The  Executives'  Club  of  New  York 

earnest  workers,  sincere  comrades,  forward- 
looking  leaders,  this  work  is  dedicated  in 
appreciation 


1260716 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/developingexecutOOgowiiala 


PREFACE 

"There  are  more  jobs  for  forceful  men  than  there  are 
forceful  men  to  fill  them,"  says  tHe  L^naTrman  of  the  Bethlehem 
Steel  Corporation,  Charles  M,  Schwab.  "Whenever  the  ques- 
tion comes  up  of  buying  new  works  we  never  consider  whether 
we  can  make  the  works  pay.  That  is  a  foregone  conclusion 
if  we  can  get  the  right  man  to  manage  them." 

"The  average  man  is  ambitious  and  wants  to  get  ahead," 
says  the  General  Manager  of  the  Loose-Wiles  Biscuit  Com- 
pany, G.  H.  Willcockson,  "but  he  does  not  know  how/' 

The  opportunity  with  which  men  in  business  are  faced  and 
the  reason  why  it  remains  in  large  measure  unutilized  are 
here  set  forth.  Though  the  need  for  their  most  skilled  service 
continues  very  real,  men  possessed  of  the  latent  executive 
capacity  too  often  are  left  to  plod  through  the  day's  work  as 
best  they  may,  without  vision  and  the  definite  methods  which 
might  so  readily  advance  them. 

This  vision  and  these  definite  methods,  valuable  because 
based  on  sound  principles  and  concrete  enough  to  apply  to  the 
day's  work,  are  necessary  if  men  in  business  are  to  forge 
ahead;  and  they  ought  to  be  so  interwoven  with  the  general 
qualities  of  mind  and  body  that  a  coherent  program  of  personal 
management  results.  The  individual  then  utilizes  to  the  full 
his  resources  because  he  wants  to  and  knows  how.  That 
such  full  utilization  shall  take  place  in  the  reader's  personality 
and  career  constitutes  the  purpose  of  this  book. 

The  form  of  presentation  adopted  is  non-technical  and  in- 
formal to  a  degree  perhaps  unusual  in  a  work  of  such  serious 
purpose.     The  author  admittedly  has  a  preference   for  the 


VI 


PREFACE 


more  strictly  scientific,  and  the  informal  nature  of  the  book 
is  due  to  the  fact  that  much  of  its  material  has  been  presented 
before  various  groups  of  business  and  college  men,  and  that 
the  interest  and  preferences  of  these  audiences  have  been  taken 
rather  definitely  as  a  guide  in  the  task  of  writing.  Theoretical 
discussions,  which  in  the  past  proved  least  interesting,  have 
been  reduced  to  a  minimum;  and  concrete  instances,  definite 
methods  and  opinions  of  leading  executives,  for  which  the 
hearers  evinced  a  keen  appreciation,  have  been  presented  with 
relative  fulness.  The  result  is  not  a  work  for  scholars,  much 
less  an  attempt  to  display  erudition,  but  a  series  of  chapters 
distinctly  practical  in  their  aim. 

It  is  a  pleasure  to  acknowledge  the  aid  received  from  busi- 
ness executives,  who  in  considerable  number  considered  with 
the  author  their  problems ;  students  who  have  supplied  various 
materials ;  and  the  following  books  and  magazines,  quotations 
from  which  appear  in  the  present  volume  on  the  pages 
specified :  George  P.  Baker  and  Henry  C.  Huntington,  "Prin- 
ciples of  Argumentation,"  239,  240;  Harrington  Emerson, 
"Twelve  Principles  of  Efficiency,"  135;  B.  C.  Forbes,  "Men 
Who  Are  Making  America,"  10,  371,  417;  F.  B.  Gilbreth, 
"Motion  Study,"  172;  W.  H.  Hemdon  and  J.  W.  Wiek, 
*' Abraham  Lincoln,"  220;  Hearst's  Magazine,  347,  Engineer- 
ing Magazine,  284,  285,  286;  William  James,  "Principles  of 
Psychology,"  84,  85,  87,  186,  325-326;  Ibidem,  "Talks  to 
Teachers  on  Psychology,"  344,  352;  E.  D.  Jones,  "Adminis- 
tration of  Industrial  Enterprises;"  W.  C.  Mitchell,  "Business 
Cycles,"  261,  266;  Angelo  Mosso,  "Fatigue,"  339;  F.  W. 
McMurry,  "How  to  Study,"  16;  Life  Extension  Institute, 
296,  314,  358;  J.  D.  Rockefeller,  "Random  Reminiscences  of 
Men  and  Events;"  C.  E.  Seashore,  "Psychology  in  Everyday 
Life,"  86;  System,  11,  54,  115,  129,  149,  151,  208,  429;  Ida 
M.  Tarbell,  "History  of  the  Standard  Oil  Company,"  64, 
199,    390,    449;    F.    W.    Taussig,    "Inventors  and  Money- 


PREFACE  vR 

Makers,"  216;  World's  Work,  226.  These  quotations  were  to 
have  been  cited  in  the  footnotes,  but  owing  to  the  author's 
entrance  upon  duties  in  the  Ordnance  Department  before  the 
manuscript  was  fully  completed  the  plan  contemplated  was  not 
carried  out.  For  the  same  reason  the  author  is  indebted  rather 
more  than  otherwise  he  would  have  been  to  members  of 
The  Ronald  Press  Company's  editorial  staff.  Mr.  Conyngton 
and  Mr.  Shidle  very  kindly  prepared  the  legal  portion  of  the 
chapter,  "The  Executive's  Legal  Problems,"  Mr.  Shidle  in 
connection  with  other  chapters  has  also  been  very  helpful,  and 
Mr.  Wade  has  done  much  of  the  work  in  expanding  a  single 
chapter  on  "Personal  Finance"  into  the  present  Part  VII. 

The  author  thanks  all  these  co-workers  for  their  interest 
in  cultivating  with  him  the  science  of  personal  management. 


E.   B.   GowiN. 


Washington,  D.  C, 
Labor  Day,  19 18. 


CONTENTS 

Part  I — Today's  Work — and  Beyond 

Chapter  Page 

I     The  Opportunity  of  the  Executive     ....         3 

The  Big  Idea  in  Business 

In  Charge  of  a  Billion-Dollar  Enterprise 

The  Twenty-Five  Per  Cent  Man 

Opportunity 

The  Increased  Demand  for  Executives 

Noted  Business  Men  Explain  Their  Advancement 

Personal  Traits  Which  Brought  Promotion 

II    A  Definite  Program 12 


The  Coherent  Program  Which  Gets  Results 

Standardization  the  Key  Principle 

A  Policy  of  Preparedness,  Whatever  the  Present 

Position 
Exercises 
How  to  Study 


Part  II — The  Basis  of  Personal  System 

III    Handling   Details 21 

Victim  or  Master  of  Details 

How  J.   Pierpont  Morgan  Handled  Details 

Business  Knowledge  Which  Gets  Down  to  Bed-Rock 

Systematic  Care  for  Details 

A  First  Aid  to  the  Memory — the  Memo 

The  Defects  of  a  Bound  Note-Book 

The  Loose-Leaf  Memo  System 

Ruled  and  Printed  Memo  Sheets 

How  to  Dispose  of  Memoranda — The  Tickler 

An  Example  of  the  Tickler's  Use 

Simpler  Forms  of  the  Tickler  Method 

The  Newspaper  Man's  Assignment  Book 

A  Department  Store  Superintendent's  Methods 

The  Tickler  as  a  Business  Getter 

Incoming  Material 

Systematic  Filing  a  Matter  of  Course  in  Careful 

Business 
Apply  the  Lesson  to  Your  Own  Work 
The  Idea  File — Mental  Staleness  and  Its-  Antidotes 
The  Retailer  Keeps  Up-to-Date 

ix 


X  CONTENTS 

Chapter  Page 

The  Idea  File  in  Operation 
An  Increased  Supply  of  Facts 
A  Loose-Leaf  Idea  File 
An  Index  for  Books  and  Articles 
Conclusion 
Exercises 

Methods  You  Are  Using 

Not  Too  Much  Apparatus 

A  Final  Warning 

IV    Office   Equipment 43 

The  Executive's  Workshop 

The  Office  Desk 

The  "Built-to-Order"  Desk 

The  Desk  Cleared  for  Action 

The  Desk  Kept  Cleared  for  Action 

"One  at  a  Time,  Gentlemen !" 

The  Day's  Work  File 

A  General  Manager  Analyzes  His  Work 

A  Hold-Over  File 

The  Deep  Drawer  Remodeled  Into  a  File 

Results  of  Good  Equipment  and  Layout 

The  Disposal  of  Finished  Work 

The  Matter  of  Small  Wastes 

A  Place  for  Each  Desk  Tool 

The  Glass  Desk  Top  as  an  Extra  File 

An  Architect's  Office  System 

The  Executive's  Devices  for  Communication 

The  Telephone,  Its  Use  and  Abuse 

Dictograph  and  Telautograph 

The  Importance  of  Office  Layout 

A  Real  Estate  Dealer's  Office  Problem 

What  an  Investigation  Revealed 

The  Office  as  Rearranged 

Conclusion 

Exercises 

Simple  Forms  of  the  Day's  Work  File 

An  Inventory  of  Your  Desk  Tools 

Other  Aids 

Lost  Motion  in  Your  Own  Office 

V    The  Private  Secretary 64 

John  D.  Rockefeller's  Growth  as  an  Executive 

The  Standard  Oil  "Trust" 

The  Headship  of  a  Big  Organization 

The  Executive's  Chief  Business 

The  Utilization  of  Assistants 

The  Duties  of  a  Private  Secretary 

The  Money  Value  of  Secretarial  Services 

The  Secretary  Promotes  His  Chief's  Efficiency 

Selecting  a  Secretary — The  "Hire  and  Fire"  Policy 

Where  to  Find  Suitable  Applicants 


CONTENTS  xi 

Chapter  Page 

The  Secretary's  Qualifications 
The  Rating  of  the  Various  Applicants 
Standardized  Conditions  for  the  Secretary 
The  Secretary's  Desk  with  Respect  to  Office  Layout 
Training  as  the  Source  of  Competent  Secretaries 
The  Best  Possible  Results  from  a  Given  Cost 
A  Special  Training  Course 
Handling  Correspondence  Without  Dictation 
A  Knowledge  of  the  Company's  Business 
Instructions  by  the  Executive 
The  Developing  of  Initiative  and  Responsibility 
The  Complaint  That  Secretaries  Do  Not  Think 
The  Unsystematic  Man  Hard  to  Satisfy 
William  A.  Field  Defines  Executive  Success 
A  Training  School  for  the  Coming  Executive 
Exercises 

The  Waste  of  Petty  Annoyances 

Important  and  Unimportant  Tasks 

VI    A  Serviceable  Memory 84 

The  Tool  Which  Is  Used  Most  of  All 

The  Memory  that  Gets  Results 

Improving  the  Memory 

The  Man  Who  Remembers  Is  He  Who  Knows  How 

Why  "Memory  Systems"  Have  Long  Flourished 

The  Operation  of  a  Typical  Memory  System 

Curious  Attempts  to  Strengthen  the  Memory 

Thurlow  Weed's  Method 

A  Wasteful  Method 

Rules  of  Impression 

1.  Become  Thoroughly  Interested 

2.  Be  a  Specialist,  Ignorant  of  Many  Things 

3.  Concentrate    Upon    the    Essentials    of    Your 

Specialty 

4.  Master  as  You  Go 

Rules  of  Association 

1.  Analyze    for   Principles 

2.  Discover  Relationships 

3.  Make   Use   of   Associations 

4.  Bind   Elements   Into  Large  Units 

Rules  of  Recall 

1.  Recall  With  Accuracy 

2.  Concentrate  on  the  Relevant 

3.  Repeat  the   Recall   Frequently 

4.  Seek  Out  Clues   Persistently 

Rules  of  Recognition 

1.  Recognize  With  Vividness 

2,  Express    the    Recognition    Appropriately 


xii  CONTENTS 

Chapter  Page 

3.  Trust  Your  Memory 

4.  Forget  the  Useless 
Summary  of  Rules 
Exercises 

Conditions  of  Memorizing 

Methods  of  Memorizing 

Not  Just  Plodding,  But  Planning 


Part  III— The  Dispatch  of  a  Day's  Work 

VII     Planning  the  Day's  Work 107 

The  Economy  of  Well-Planned  Activities 

On  the  Offensive 

Definite  Accomplishment 

Colonel  Roosevelt  An  Orderly  Worker 

A  Survey  of  the  Day's  Work 

The  Elements  of  Planning 

The  Waste  of  Unplanned  Work 

The  Assistance  of  Systematic  Planning 

Illustrations  of  Systematic  Planning 

Some  Typical  Daily  Plans 

1.  Daily  Program  of  Auditor  for  Street  Railw^ay 

Company 

2.  A  Manufacturer's  Schedule 

3.  A  Sales  Manager's  Schedule 

4.  A  Bank  Cashier's  Schedule 

5.  Daily  Working  Plan  of  Manager  of  Mail-Order 

Sales 

6.  Duties  Recommended  for  Schedule  By  Carroll 

D.   Murphy,  in  System 
Preparing  Your  Plan 
Classifying  Your  Work 
Applying  the  Analysis  in  a  Definite  Plan 
A  Trouble  Man's  Daily  Program 
Better  Results  from  Planning 
How  Much  Time  Is  This  Task  Worth? 
Why  Write  Out  the  Plan? 
How  Far  Ahead  to  Plan 
Making  the  Plan  Fit  Your  Needs 
The  Matter  of  Personality 
When  to  Prepare  the  Plan 
Wide  Applicability  of  Planning 
Exercises 

Is  Planning  Practicable? 

Planning  for  Others 

Planning  in  Daily  Life 

VIII     Doing  the    Day's  Work 135 

Putting  the  Plan  Through 
Marvelous  System  of  Dispatching 


CONTENTS  .  xiii 

Chapter  Page 

Human  Traits  of  the  Long  Ago 
Inefficiency  Still  With  Us 

Opponents  the  Systematic  Worker  Must  Overcome 
The  Procrastinator 
The  Big  Dreamy  Idea 

An  Always  Available  Stock  of  Raw^  Materials 
Yesterday  is  Dead;  Be  Done  With  It 
The  Waste-Basket  as  an  Ally 
Dilatory  Co-operation 
Interruptions — By  House  Men 
A  General  Office  Schedule 
The  Problem  of  Handling  Callers 
The  Selection  of  Callers 
The  Growing  Aggressiveness  of  Callers 
How  Shall  the  Executive  Protect  His  Time? 
Shortening  the  Caller's  Stay 
Closing  the   Interview 
The  Distress  Signal 
Who  Else  Is  Waiting? 
President  Roosevelt  and  His  Callers 
Dominating  the  Interview 
Exercises 

Wasting  Time 

Your  Own  Record 

Improvement 

IX     Short-Cuts .     159 

Amateur  Versus  Expert 

A  Lesson  from  Animal  Psychology 

Short-Cuts  Represent  Perfected  Methods 

Conservation  of  Time 

Business  Time  for  Business  * 

Some  Things  Not  to  Do 

Supervising  from  the  Office 

Words  versus  Check  Marks 

Use  of  Both  Hands 

Head  versus  Heels 

Starting  and  Stopping 

Day's  Work  Plan  for  the  Secretary 

Filing  Short-Cuts 

Use  of  Symbols 

Preparation  for  Dictation 

Speed  in  Dictating 

Elimination  of  Wasteful  Details 

Dispatch  in  Handling  Correspondence 

Color  Schemes 

Carbon  Copies 

Machines  for  Dictation 

The  Automatic  Correspondent 

100  Per  Cent  Efficiency 

The  Fire  Department  a  Personal  Incentive 

The  Daily  Use  of  Short-Cuts 


xiv  CONTENTS 

Chapter  Page 

Exercises 

Short-Cuts  in  Use 

A  Test  of  Progress 

The  Short-Cut  Point  of  View 

X    Efficiency  Habits 177 

Henry  Ford  and  The  Radiator  Cap 

Justifiable  Expenditure 

The  Nervous  System  a  Business  Organization 

Habit  is  Standardized  Nerve  Action 

The  Efficient  versus  the  Inefficient  Way 

Double  Waste 

Productive  Povi^er  Capitalized 

Habits  Inevitable;  Which  Kind? 

Thought  Followed  by  Action 

Keeping  Fully  "Sold"  On  a  Subject 

The  Road  to  Full  Efficiency 

The  Influence  of  Habit  Upon  Creative  Work 

Exercises 

Standardizing  Good  Practice 

Benjamin  Franklin's  Method 

Applying  the  Principle 

Part  IV— The  Thinker  in  Business 

XI    Initiative  and  Vision 195 

Routine  and  Constructive  Thought 
The  Perception  of  Opportunity 

1.  Exploitation  of  Natural  Resources 

2.  Development  of  Inventions 

•  3.     Improvements  in  Production  and  Distribution 

4.  Fluctuations  in  Values 

5.  Supplying  Known  Wants 
Needs  and  the  Law  of  Service 
The  Many  Roads  Upward 
The  Business  Man's  Task 
Alertness  a  Business  Asset 
Pioneer  versus  Followers 
The  Power  of  Initiative 

The  Fresh  Viewpoint 

The  Raw  Material  of  Ideas 

The  Search  for  Business  Ideas 

Imagination,  a  Quality  of  Empire  Builders 

Development  of  New  Ideas 

Thought  as  a  Business  Force 

Exercises 

Intelligent  Observation 

Keeping  the  Mind  Alert  and  Active 

XII     The  Feasible  Project 215 

The  Commercial  Instinct 


CONTENTS  XV 

Chapter  Page 

Edison  and  Commercial  Availability 
Reflection  Performs  an  Essential  Service 
Andrew  Carnegie  on  Business  Judgment 
The  "Sure  Thing"  Delusion 
The  Risks  of  Business 
The  Problem-Solving  Type  of  Mind 
The  Mastery  of  a  Business 
Getting  at  the  Essentials 
Keeping  the  Right  Road 
Lord  Bacon's  Warning 
The  Danger  of  Deceiving  Oneself 
Procedure  at  the  General  Electric  Plant 
The  Systematic  Elimination  of  Risk 
Superior  Reasoning  Ability  in  Practice 
Exercises 

First  Ideas 

The  Sifting  of  Ideas 

XIII     Tests  of  Reasoning 231 

Exact  Knowledge  Needed 

Sources  of  Information 

Testing  the  Evidence 

Systematic  and  Accurate  Procedure 

Analysis  for  the  Executive 

What  Does  the  Idea  Mean? 

Competence  of  the  Witness 

The  Idea  Itself 

Correctness  of  the  Process  of  Reasoning 

Correctness  of  Premises 

Incorrect  Sequence — Analogy 

Incorrect  Sequence — Evidence  Not  Sufficient 

Factors  Overlooked 

Validity  of  These  Tests 

Exercises 

Problems  in  Analysis 

Mill's  Five  Canons 


Part  V — Aids  to  Efficient  Control  of  Business 

XIV    Control  Through  Statistics 251 

The  Problem  of  Control 

The  Securing  of  Statistical  Data 

Adequate  Control  at  Reduced  Cost     . 

1.  Standardized  Forms 

2.  Essential  Data 

3.  Samples 

4     Up-to-date  Information 

5.  Summarized  Reports 

6.  Statistical  Analysis 

Outside  Conditions :  Business  Barometers 


XV  i  CONTENTS 

Chapter  Page 

The  Cycles  of  Business 
The  Study  of  Fundamentals 
A  Preliminary  Analysis 
.     The  Volume  of  Business — Bank  of  Clearings 
Further  Data  on  Volume  of  Business 
Other  Fundamental  Statistics 
The  Choice  of  Barometers 
The  Sources  of  Statistics 
The  Interpretation  of  Fundamental  Statistics 
Significance  of  the  Time  Element 
Forecasting  Made  Possible  by  Statistical  Knowledge 
Exercises 
Forecasting 

XV    Graphic  Presentation 272 

Information  in  Usable  Form 

The  Mobilization  of  Business 

Speeding  Up  the  Judgment 

Graphs  in  the  Great  War 

Why  the  Executive  Uses  Graphs 

Maps 

Increasing  the  Map's  Usefulness 

"Boards"  Which  Present  Facts  Graphically 

Control-Boards 

Geometric  Figures  as  Aids  in  Presentation 

Charts  Which  Confuse 

Curves,  the  Graphic  Device  Par  Excellence 

Standards  for  Graphic  Presentation 

Qualities  Essential  to  the  Executive 

Exercises 

Data  You  Need 

Graphic  Presentation  of  this  Material 


Part  VI — Personal  Dynamics 

XVI    Physical  Energy 293 

Pushing  the  Project  Through 

The  Victories  of  Physique 

The  Wastes  of  Below-Par  Condition 

Overlooked  Resources 

What  Shall  Our  Physical  Ideals  Be? 

Sources  of  Physical  Energy 

Food  and  Normal  Diet 

The  Three  Chief  Classes  of  Foods 

Food  Selection  and  the  Appetite 

Restoring  the  Natural  Appetite 

How  Thorough  Mastication  Aids  the  Digestion 

Air  as  an  Energizer 

Invigorating  versus  Devitalizing  Air 

Making  the  Best  Use  of  Air 


Chapter 


XVll 

Page 


CONTENTS 


Bodily  Poisons 

Don't  Increase  the  Handicap 

Mouth  Sanitation 

Constipation,  the  Anti-efficiency  Malady 

Exercise  and  Energy 

"Spectatoritis"  a  Serious  American  Disease 

Six  Essentials  for  a  System  of  Exercise 

Maintaining  Good  Posture 

Lessons  from  Our  Army 

Rules  for  Health  Culture 

Exercises 

Walter  Camp's  Suggestion  Exercises 

Health  Culture  Chart 


XVII    Power   of   Will 320 

A  Hard  Drive  Toward  the  Goal 

The  Business  of  Mind  Building 

Bizarre  Schemes  for  Developing  the  Will 

What  Will-power  Really  Is,  and  How  Cultivated 

Fires  Which  Are  Damped 

The  Ruling  Passion 

A  Mind  Made  Up,  and  Moving  Forward 

The  Ruling  Passion  Supplemented 

Yourself  on  Record — Cottingham's  Campaign 

The  Salesmen's  Response 

Keeping  One's  Goal  in  Sight 

The  Atmosphere  of  Achievement 

A  Man's  Opinion  of  Himself 

Faith  in  Self 

Attitudes  of  Power 

Self-Discipline 

Will  Training  Summarized 

Exercises 


XVIII     Mental  Economy 337 

The  Art  of  Mental  Economy 
The  Tired  Person  is  Poisoned 
A  Record  From  Life's  Firing  Line 
Fatigue  and  Inefficiency 
Definite  Accomplishment 
Habits  and  Specialization 
Introspection  versus  Objectivity 
Worry,  the  Policy  of  a  Spendthrift 
Zones  of  Low  Fatigue 
The  Means  for  Recreation 
"Vacations  Daily" 
Sleeplessness  and  Its  Cure 
The  Gospel  of  Relaxation 
Conservation  versus  Waste 
Conservation  versus  Waste — Results 
Repose  as  an  Ideal 


XVUl 


CONTENTS 


Chapter 


Page 


The  Elimination  of  Distractions 

Cases  Decided  Once  for  All 

A  Little  Humor  Now  and  Then 

The  Spirit  of  Youth 

Fads  versus  Common  Sens« 

Exercises 

"Planning"  Mental  Effort 

A  Self-Grading  Chart 


Part  VII — Personal  Finance 


XIX    The  Power  of  Finance 

Pushing  a  Business  Project 

The  "Help  Yourself"  Plan 

Growth  of  the  Business 

In  Business  for  Oneself 

Requisites  of  a  Successful  Enterprise 

Testing  the  Soundness  of  an  Enterprise 

The  Factor  of  Management 

Sufficient  Capital 


365 


XX     Thrift  as  a  Working  Policy 

Financial  Preparedness 
Building  Solidly 
American  Habits  of  Waste 
Value  of  Thrift 
Plans  Suggested  for  Saving 
The  Family  Standard  of  Living 
The  Productive  Use  of  Funds 
Exercises 


27^ 


XXI    The  Art  of  Investing 

The  Business  Man  as  an  Investor 
Qualities  of  an  Ideal  Investment 
Sources  of  Information  as  to  Investments 

I.  Diversifying  Investments 

II.  Buying  Periods  and  Selling  Periods 

III.  Do  Not  Speculate 

IV.  Slow  but  Sure  Investments 

V.  Avoid  All  Get-Rich-Quick  Schemes 
Exercises 

Some  Personal  Questions  as  to  Investing  Money 


382 


XXII    The  Financing  of  a  Business 

Where  the  Real  Profits  Are 
Methods  of  Financing 
Rockefeller  a  Shrewd  Borrower 
Why  Borrow 


389 


Chapter 


CONTENTS 


Confidence  a  Business  Asset 

Borrowing  for  Business  Purposes 

Financing  By  Means  of  Partnership 

Selection  of  a  Partner 

The  Corporation 

Adequacy  of  Capital 

Exercises 

Amount  of  Capital  Needed 

Borrowing 

Partnership 

Incorporation 

Building  Up  the  Business 


XIX 

Page 


XXIII    The  Executive's   Legal   Problems 400 

Help  versus  Hindrance 

The  Law  of  the  Land 

Relation  of  Law  to  Business 

The  Law  of  Contracts 

The  Law  of  Agency 

Business  Organization 

The  Law  Relating  to  Your  Own  Line  of  Business 

Wherein  the  Law  is   Lacking — Procedure   Slow 

Complexity 

Variety  of  Sources 

How  to  Secure  a  Knowledge  of  Law 

How  to  Avoid  Litigation 

The   Lawyer   and   the   Business   Man 

Lawyer's   Fees 

The  Rules  of  Finance 

Elementary  Rules  of  Financing 

Law  Books  for  Business  Men 


Part  yill — A  Man  Among  Men 

XXIV    Team-Work 417 

Business  Today  Beyond  the  One-Man  Stage 

Reaching  the   Consumer 

Large-Scale   Production 

Advantages  of  the  Big  Business 

The   Organization   Point  of  View 

The  Business  of  Being  an  Executive 

Rules  of  the  Business   Game 

Principles  of  Scientific  Management 

Charting  the  Manager's  Responsibilities 

Outlines  of  Specific  Duties 

Exercises 

Careful  Adjustment  of  Functions 

A  Test  of  Executive  Capacity 


XX 


CONTENTS 


Chapter 

XXV    Co-operation 


Page 
434 


XXVII 


The   Placing  of  First  Things  First 

The  Best  Index  for  Efficiency 

The  Organization's  First  Essential 

Surety  of  Performance 

What  the  Name  "G.  Washington"  Meant 

Winning  the  Good- Will  of  Others 

Enabling  Men  to  Make  Good 

Tact,  a  Quality  Which  Makes  for  Effectiveness 

Signs  Which  Indicate  Co-operation 

The  Iron  Grip  Surrendered, 

The  Enterprise  Greater  Than  Self 

Exercises 

Playing  the  Game 

How  Do  You  Grade? 


XXVI     The  New  Ideals  of  Business 


448 


Thinking   in    Broader    Terms 

"Business  Is  Business" 

The    "Public    be    Damned"    Policy 

The  Public  Revolt  Against  Misused  Power 

The  "Public  be  Served"  Policy 

The    Corporation    Discovers    its    Soul 

The  Executive's  Service  Ideals 

Development  of  Social  Consciousness 

The  Enduring  Satisfaction  of  Business 

Exercises 


The  Goal  Which  Moves  Forward     . 

Yourself  That  is  To   Be 

Utilizing   the    Concrete   Opportunities 

The    Road   to    Mastery — and    Its    Side    Paths 

The  Man  Who  Moves   Forward 


459 


Part  IX— What  to  Read 


XXVIII     Intellectual  Preparedness  . 

The  Future  Business  Leader 
Self-Culture   in   Business 
Making    the    Most    of    Opportunity 
The  Making  of  a  Great  Character 


465 


XXIX     Books  FOR  the  Business  Man 

A    Broad    Effectiveness 

Business    Management 

Marketing 

Finance 

Accounting 


470 


CONTENTS  xxi 

Chapter  Page 

Economics 
Business    Law 
The    Scientific    Method 
Health   and    Mind    Culture 
Natural   and   Social   Sciences 
Biography- 
Correspondence  Courses 
Current  Publications 


FORMS  AND  ILLUSTRATIONS 


Figure  Page 

1.  The  Tickler 27 

2.  Memo   Cards    for   Tickler 29 

3.  The    Memo    System    Devised    by    a    Busy    Department    Store 

Superintendent 30 

4.  Alphabetical  Filing        32 

5.  An  Index  Card  for  Books  and  Magazines 38 

6.  A  Desk  Built  to  Order 45 

7.  The  Day's  Work  File 47 

8.  An  Extension  of  the  Day's  Work  File 49 

9.  The  Center  Desk  Drawer  Partitioned 52 

10.  Schedule  for  Desk  Glass 54 

11.  A  Real  Estate  Dealer's  Office   (a)   Poorly  Arranged,   (b)   Well 

Arranged 58 

12.  A  Matter  of  Organization 67 

13.  The  Various  Steps  in  Memory  Culture  are  Here  Summarized  loi 

14.  Weekly  Schedule  of  Work.     (Used  by  W.  F.  IngersoU)    .     .  114 

15.  Schedule  for  Daily  Work 117 

16.  A   General   Manager's  Daily  Order  of   Business 130 

17.  Office  Schedule 144 

18.  Interdepartmental   Schedule 146 

19.  "Ammunition"  for  Breaking  Through  the  Executive's  Defense  148 

20.  Checking  System 162 

21.  Card  Used  to  Save  Time  of  Dictating 170 

22.  Brain  and   Spinal   Cord,   with  the   Thirty-one   Pairs   of   Spinal 

Nerves 180 

23.  The  Elements  of  Costs 252 

24.  The  Securing  of  Statistical  Data 253 

25.  General  Layout  of  a  Unit  Record 255 

2^  (a).    Babson's    "Compositplot" 267 

26  (b).    Brookmire's  Graph 268 

2"].    A  Railroad's  Operating  Ratio 281 

28.  Detailed   Time    Study   of   Two    Operators    Labeling    Packages  282 

29.  Factory  Production  of   Shoes   Shown  "in  Round  Numbers"    .  283 

30.  Control  Curves   Showing  Gross   Earnings   of   Three   Factories  284 

31.  Curves  Used  as  a  Means  of  Executive  Statistical  Control  .     .  285 

32.  A  Nerve  Test 339 

33.  The   Channels  of  Distribution 419 

34.  Organization  of  a  Factory 425 

35.  (a)  and  (b).    The  Executive's  Position 430 

36.  "My   Duties"   Analyzed 431 

xxiii 


TEST  CHARTS 


Chart  Page 

1.  How  I  Am  Handling  Details 40 

2.  Standardizing  the  Apparatus  for  Handling  Petails 41 

3.  An   Inventory  of  Desk  Tools 62 

4.  Whose   Work? 82 

5.  Securing  Best  Results  from  the  Private  Secretary 83 

6.  My  Experience  with — 132 

7.  Planning  My  Work 133 

8.  My  Record  as  a  Dispatcher 158 

9.  The   Results   of   Twenty-four   Working   Days    Compiled    from 

the  Records  of  Five  Specialty  Salesmen 175 

10.  The    Systematization   of   the    Day's   Work   is   Here    Reviewed 

in   Nine   General   Questions 189 

11.  Capitalizing   Attainments   as   Habits 192 

12.  How  Profits  are  Being  Made  in  My  Field 213 

13.  History  of  Ten  Ventures 229 

14.  Six  Forecasts 270 

15.  A  Personal  Forecast 271 

16.  Health  Culture  Chart 318 

17.  The  Culture  of  Will 33^ 

18.  Mental  Economy's  Self-Grading  Chart 360 

19.  Chart  for  Self-Grading  on  Saving  Money 381 

20.  Sixteen  Tests  of  Executive  Capacity 433 

21.  Points    of    Co-operation 447 


XXIV 


DEVELOPING     EXECUTIVE 
ABILITY 


PART  I 
TODAY'S  WORK— AND   BEYOND 

Under  scientific  management  the  best  man  rises  to  the 
top  more  certainly  and  more  rapidly  than  ever  before. — 
Frederick  Winslow  Taylor. 


CHAPTER  I 

THE  OPPORTUNITY  OF  THE   EXECUTIVE 

There   are   more   jobs  for  forceful   men   than   there   are 
forceful  men  to  fill  them. — Charles  M.  Schwab. 

The  Big  Idea  in  Business 

The  time  has  arrived  in  business  when  executives,  con- 
vinced that  rule-of-thumb  cannot  serve  them,  are  developing 
with  great  rapidity  the  new  science  of  management.  It  is 
not  that  these  men  prefer  theories,  or  changes,  or  severe  think- 
ing; the  new  methods  get  results  and  they  are  adopted  solely 
for  this  reason.  This  development  of  better  management, 
both  in  its  aims  and  methods,  is  commendable ;  but,  since  every 
man  personally,  as  well  as  officially,  has  a  business  enterprise 
under  way,  is  the  process  to  stop  short  of  the  executives  them- 
selves? The  individual,  no  less  than  the  corporation,  has 
his  problems  of  production,  sales,  accounts,  and  finance.  In 
order  to  render  his  enterprise  highly  profitable,  a  first-rate 
dividend-payer  whose  stock  is  always  above  par,  every  self- 
manager  who  is  progressive  and  foresighted,  will  seek  to  con- 
duct these  four  operations  in  a  manner  that  is  thoroughly 
efficient. 

In  his  moments  of  strength  a  man  sets  for  himself  as  per- 
sonal manager  certain  standards  of  achievement.  These  rep- 
resent his  maximum,  that  high  level  of  independence,  respon- 
sibility, opportunity,  and  remuneration  for  which  his  best  self 
longs  and  to  which  his  capacity  justifiably  entitles  him.  He 
proposes  to  forge  ahead  until  these  worthy  ends  are  attained — 
his  part  meanwhile  to  be  that  of  a  skilled  player  enjoying 

3 


4  TODAY'S  WORK  AND  BEYOND 

every  move  in  the  great  game  of  business  itself.  This  full 
utilization  of  every  available  resource,  this  getting  of  the 
best  from  oneself,  constitutes  to  him  the  big  idea. 

In  Charge  of  a  Billion-Dollar  Enterprise 

In  speaking  of  a  man's  personality  as  a  business  enter- 
prise, with  its  problems  of  production,  sales,  accounts,  and 
finance,  and  its  ideal  of  first-class  management,  have  we  a  con- 
ception which  is  definite  and  which  may  be  justified?  Let  us 
see. 

For  more  than  fifteen  years  one  man  has  been  the  chief 
master  of  the  iron  and  steel  industry,  with  152,000  stock- 
holders above  him  expecting  dividends  and  270,000  workmen 
beneath  him  demanding  wages.  He  is  Elbert  H.  Gary,  Chair- 
man of  the  Board  of  Directors  of  the  United  States  Steel 
Corporation.  He  presides  over  an  industrial  empire  owning 
more  land  than  Massachusetts,  New  Hampshire,  and  Ver- 
mont combined;  supporting  more  people  than  inhabit  Ne- 
braska ;  employing  more  men  than  fought  at  Gettysburg ;  sail- 
ing a  larger  navy  than  that  of  Italy;  gathering  in  a  larger 
revenue  than  the  United  States  Treasury;  and  representing 
more  capital  than  all  the  banks  in  New  York  City. 

Judge  Gary,  while  not  a  practical  manufacturer,  is  over- 
lord of  146  plants  and  1,700  industrial  communities;  though 
he  is  neither  a  railroad  nor  steamship  authority,  he  directs  a 
trackage  of  3,380  miles  and  a  fleet  of  220  units;  he  is  not  a 
miner,  yet  his  company  excavates  iron  ore  and  coal  with  an 
army  of  40,000  men;  he  is  no  expert  steel-maker,  but  his 
furnaces  and  mills  roll  up  .tremendous  production  records. 

His  business  cares  do  not  seem  to  tax  him. 

Yet  while  Judge  Gary  goes  calmly  on  his  way  with  his 
billion-dollar  corporation  in  tow  and  other  captains  of  indus- 
try, similar  in  their  effectiveness,  are  crowding  the  business 
day  with  transactions  of  like  magnitude,  we  meet  men  "hur- 


THE  OPPORTUNITY  OF  THE  EXECUTIVE        5 

ried  to  death"  managing  corner  groceries,  "awfully  busy" 
attending  to  tiny  machine  shops,  worried  into  sleeplessness 
over  the  burden  of  $100  deals.  Their  business  stature,  in 
comparison  with  the  captain  of  industry,  appears  dwarfed. 
Manifestly  Judge  Gary,  and  men  like  him,  had  certain  in- 
born qualities  and  capacities  of  high  grade  upon  which  to 
build.  Yet  mere  inherent  ability,  inborn  capacity,  floats  no 
man  to  an  easy  success.  Every  one  of  these  men  utilized,  de- 
veloped, made  the  most  of  the  powers  with  which  he  was  en- 
dowed by  nature.  His  personal  enterprise  becomes  stronger, 
better  organized,  more  smoothly  efficient  year  by  year. 

The  Twenty-Five  Per  Cent  Man 

Inside  every  business  organization  there  are  men  who, 
somehow,  have  stood  still.  They  have  been  years  perhaps 
with  the  same  company,  at  their  desk  regularly  from  nine  to 
five ;  yet  they  have  received  little  if  any  real  promotion.  Worse 
still,  others  have  been  advanced  over  their  heads,  and  the 
orders  issued  by  some  of  these  erstwhile  subordinates,  now 
managers,  under  the  circumstances  contain  a  sting.  The 
mental  atmosphere  in  which  such  men  live  deadens  and  em- 
bitters; it  serves  to  breed  disloyalty,  possibly  anarchy,  cer- 
tainly not  efficiency. 

What  men  in  business  receive,  however,  whether  they 
be  rising  executives  or  the  routine-minded  caught  in  stagnant 
coves,  is,  as  a  broad,  general  principle,  proportioned  strictly 
to  the  value  of  their  services.  The  corporation  which  pays 
its  president  perhaps  $100,000  annually  believes  that  inasmuch 
as  the  net  profits  would  be  considerably  less  under  a  $50,000 
man,  the  big  man  is  cheap  at  the  big  salary,  whereas  acting 
under  similar  reasoning  it  at  the  same  time  discharges  a 
$i5-a-week  clerk  because  at  that  price  he  is  found  too  expen- 
sive. It  is  a  matter  simply  of  services  rated  at  a  given  value 
and  purchased  at  a  given  cost. 


\ 


6  TODAY'S  WORK  AND  BEYOND 

The  men  who  advance  concentrate  upon  the  essentials  of 
their  enterprise — its  production,  sales,  accounts,  and  finance 
activities — because  these  things,  not  complaints  and  criticisms, 
will  get  them  what  they  seek.  The  position  on  ahead  is  for 
the  man  who  overflows  the  position  now  at  hand. 

Is  the  average  business  man  of  this  plus  type,  a  smoothly 
running  dynamo  with  reserve  power  in  wait  for  some  unusual 
job?  Does  he  produce,  sell,  record,  and  finance  at  maximum 
capacity?  While  not  a  few  persons  in  a  vague  way  deceive 
themselves  into  thinking  that  their  best  is  being  done,  an 
impartial  analysis  commonly  reveals  this  average  man  acting 
thus: 
/  He  squanders  his  energy  unproductively,  worrying  more 

/      than  he  works  and  filling  his  body  and  brain  with  fatigue 

poisons. 
^  He  thinks  superficially. 

He  is  the  slave  of  rule-of-thumb,  a  sluggish  fellow  content 
to  tread  the  winding  cow-path  of  custom  instead  of  striking 
through  a  short  cut  of  his  own. 
/  He  procrastinates,  dulls  his  will  by  "can'ts,"  *'won'ts,"  and 

*'don'ts,"  and  merely  dreams  of  new  ventures. 

He  forgets. 
/  He  lacks  control — a  victim  of  carelessness,  bad  temper, 

selfishness,  laziness,  and  snap  judgment. 

He  swelters  along  under  loads  of  details,  a  never-ending 
routine  under  which  creative  plans  are  crushed  out,  and  fails 
above  all  to  perceive  that  perched  high  upon  this  pack-horse 
burden  which  he  carries  rides  his  real  master,  the  devil  of  in- 
efficiency. 

"I  believe,"  says  Melville  W.  Mix,  President  of  the  Dodge 
Manufacturing  Company,  "that  the  majority  of  executives  in 
this  country  are  not  more  than  twenty-five  per  cent  efficient 
measured  by  the  standard  of  performance  of  the  few  really 
efficient  ones." 


/ 


THE  OPPORTUNITY  OF  THE  EXECUTIVE       7 

Opportunity 

But,  someone  suggests  upon  looking  over  the  foregoing 
list,  granted  that  these  are  deficiencies,  is  not  the  average  man 
still  larger  than  the  average  job?  Could  an  additional  100 
per  cent  man  find  an  enterprise  to  swing? 

The  United  States  is  still  a  growing  country.  Its  citizens, 
because  their  standard  of  life  is  high,  with  every  indication 
of  becoming  higher,  have  many  wants,  and  the  growth  of 
population  which  bids  fair  to  continue  for  decades  thus  affords 
business  men  an  unrivaled  market.  In  addition  to  these 
domestic  needs  there  are  world  needs  of  enormous  proportions. 
Only  progressive  methods  in  production,  selling,  accounting, 
and  financing  can  meet  adequately  such  market  demands. 

The  managers  who  aim  both  to  devise  and  operate  these 
progressive  methods  have  undertaken  tasks  which  tax  to  the 
utmost  their  capacity.  With  industry  led  by  giant  corpora- 
tions, and  trade  relations  established  with  all  parts  of  the 
world,  strong  men  are  being  sought  to  bear  the  burden  of 
management.  When  within  the  organization  an  elaborate 
division  of  labor  involving  both  men  and  machines  must  be 
planned,  the  intricacy  of  the  task  calls  for  thought  power  of  a 
high  order.  Because  each  man's  effort  is  dependent  upon  the 
activities  of  many  others,  the  speed  exacted  in  output,  the 
promptness  required  in  meeting  every  situation,  render  alert- 
ness and  reliability  qualities  highly  prized.  Finally,  with 
competition  sharpening,  our  business  centers  becoming  more 
and  more  crowded,  and  the  markets  of  the  world  being  sought, 
the  man  able  most  efficiently  to  produce  quantity  and  quality 
at  low  cost,  finds  his  services  everywhere  in  demand  regardless 
of  the  line  of  business  he  is  in.  Opportunity  now  as  heretofore 
treads  hard  upon  ability. 

The  Increased  Demand  for  Executives 

This  observation  receives  general  support  in  statements 


8  TODAY'S  WORK  AND  BEYOND 

recently  made  public  by  the  heads  of  twenty-five  large  corpora- 
tions.    It  appeared  from  these  reports  that : 

1.  358   vacancies   in  executive  positions  had  developed 
within  a  very  short  time. 

2.  Men  to  fill  142  of  these  vacancies  could  be  secured 
only  from  outside  the  organizations. 

The  situation  was  being  met  in  their  own  organizations, 
certain  executives  explained,  by : 

"Promotion  and  added  duties."    Ralph  Peters,  President 

of  Long  Island  Railroad  Company. 
"The   taking  over  of   work  by   other   executives."     J. 

Franklin  McElwain,  W.  H.  McElwain  Company. 
"The  additional  work  has  been  largely  absorbed  by  those 

remaining,    made   possible  by   reorganizing   to   some 

extent,  and  the  elimination  of  unnecessary  operations." 

J.  N.  Willys,  Willys-Overland  Company. 
"We  consolidated  positions  and  increased  the  work  and 

responsibilities  of  remaining  men."     P.  T.  Wharton, 

Deere  and  Company. 

What  do  we  read  between  these  lines,  and  similar  lines 
that  could  be  penned  of  organizations  everywhere? 

This  is  a  time  when  as  never  before  every  man  has  his 
chance,  and  when  it  is  his  public  duty  to  make  the  most  of 
his  chance.  Under  the  imperative  of  war  thousands  of  men 
in  executive  positions — men  in  large  positions  and  in  small 
ones,  young  men  and  mature — were  called  into  government 
service.  Those  who  were  left  in  charge  of  business  organi- 
zations were  practically  in  the  government  service  also.  It  was 
not  only  their  opportunity,  but  their  responsibility,  to  improve 
themselves,  for  they  had  to  keep  the  fires  under  the  boiler  and 
navigate  the  ship  in  war  time  and  must  now  continue  to  do  so 
in  the  difficult  time  after  the  war. 

This  is  a  time  when  every  man  should  do  his  utmost,  a 


THE  OPPORTUNITY  OF  THE  EXECUTIVE        9 

time  when  the  demand  for  our  enlarged  capacity  to  serve 
assumes  somewhat  the  nature  of  a  call  to  world  service. 

What,  then,  should  be  our  viewpoint  concerning  oppor- 
tunity and  personal  accomplishment?  The  highest  salaried 
man  in  the  world  expressed  it  when,  upon  being  asked  how 
he  had  succeeded,  quietly  answered : 

"I  haven't  succeeded.  No  real  man  ever  succeeds.  There 
is  always  a  larger  goal  ahead."  Under  the  conditions  of 
business  as  they  are  evolving  today  this  is  literally  true ;  there 
are  always  larger  goals  ahead,  for  every  man  who  has  the 
power  to  grow. 

Noted  Business  Men  Explain  Their  Advancement 

The  reader  will  agree,  very  likely,  that  he  is  not  accom- 
plishing what  in  justice  to  himself  he  knows  he  ought  to  do. 
The  question  which  naturally  arises  then  is :  How  utilize  to 
the  full  every  resource  at  my  command  ? 

Let  us  put  this  question  to  several  captains  of  industry; 
they  have  all  displayed  conspicuous  ability  as  managers,  having 
risen  from  the  ranks,  and  their  own  views  concerning  the 
causes  of  their  notable  advancement  ought  to  prove  illumi- 
nating. 

Thomas  E.  Wilson,  President  of  Wilson  and  Company: 
"I  am  no  brainier  nor  wiser  than  any  number  of  other  people. 
My  whole  success  is  traceable  to  the  fact  that  I  have  enjoyed 
my  work  and  have  given  to  it  the  best  in  me.  No  job  was 
ever  too  big  for  me  to  tackle.  That  is  the  foundation  of  suc- 
cess nine  times  out  of  ten — having  confidence  in  yourself  and 
applying  yourself  with  all  your  might  to  your  work." 

A.  C.  Bedford,  President  of  the  Standard  Oil  Company 
of  New  Jersey :  ''The  first  promotion  I  attribute  to  my  will- 
ingness to  do  more  than  was  expected  of  me  and  to  the  insight 
I  then  obtained  into  business  methods.  This  gave  me  a  grasp 
and  a  vision  such  as  the  average  clerk  in  an  office  too  often 


> 


lO  TODAY'S  WORK  AND  BEYOND 

fails  to  cultivate  because  of  his  machine-like  performance 
of  his  allotted  tasks." 

Theodore  N.  Vail,  President  of  the  American  Telegraph 
and  Telephone  Company :  "I  was  never  unwilling  when 
young,  to  do  another  man's  work,  and  then,  when  older,  never 
willing  to  do  anything  somebody  else  could  do  better  for  me. 
I  was  always  fond  enough  of  detail  to  thoroughly  master  what 
I  was  undertaking — and  then  hated  detail  enough  to  not 
bother  with  it  when  I  got  to  the  treatment  of  the  general 
subject." 

Samuel  Insull,  President  Commonwealth  Edison  Com- 
pany :  "Non-success  is  often  due  to  inability  to  see  things,  to 
note  intelligently  what  other  people  are  doing,  to  learn  what 
is  what,  and  to  grasp  new  opportunities.  They  don't  seem  to 
keep  their  eye  on  the  ball." 

Henry  Ford,  President  Ford  Motor  Company :  "There  is 
one  principle  which  a  man  must  follow  if  he  wishes  to  succeed, 
and  that  is  to  understand  human  nature.  I  am  convinced  by 
my  own  experience,  and  by  that  of  others,  that  if  there  is  any 
secret  of  success  it  lies  in  the  abihty  to  get  another  person's 
point  of  view  and  see  things  from  his  angle  as  well  as  from 
your  own." 

James  B.  Duke,  Ex-President  American  Tobacco  Com- 
pany: "I  had  confidence  in  myself.  I  said  to  myself:  'If 
John  D.  Rockefeller  can  do  what  he  is  doing  in  oil,  why  should 
I  not  do  it  in  tobacco?'  I  resolved  from  the  time  I  was  a 
mere  lad  to  do  a  big  business.  I  loved  business  better  than 
anything  else.  I  worked  from  early  morning  to  late  at  night — 
I  was  sorry  to  have  to  leave  off  at  night  and  glad  when  morn- 
ing came  so  that  I  could  get  at  it  again." 

Personal  Traits  Which  Brought  Promotion 

Let  us  supplement  these  statements  of  the  captains  of 
industry  by  the  replies  several  executives  gave  to  this  ques- 


THE  OPPORTUNITY  OF  THE  EXECUTIVE       1 1 

tion:     Think  of  the  three  best  men  in  your  business — what 
quaHties  brought  them  promotion  ?    The  answers  follow : 

"Desire  for  authority  and  responsibility,  backed  by  suf- 
ficient will-power." 

"Resourcefulness  in  emergencies." 

"Pushed  the  work  always,  never  let  it  push  him.  Was  a 
live  wire  for  others  to  look  at." 

"A  real  diplomat  liked  by  all  the  men.  Enthusiastic — 
took  personal  interest  in  the  business,  and  got  the  best  out 
of  everything." 

"Constructive  initiative  coupled  with  the  application  of 
good  common  sense  added  to  whatever  natural  abilities  a  man 
may  have,   achieve  success — and  deserve  it." 

"Kept  studying  our  business,  and  training  himself  and 
every  man  under  him  all  the  time.  We  had  to  advance  him 
or  he'd  have  been  stolen  by  some  competitor.  He  is  cheap 
at  $15,000  anyway." 

"Stick-to-itiveness,  when  the  work  piled  high  and  the 
clock  struck  the  hour.  Didn't  'go  up  in  the  air'  at  just  criti- 
cism. Was  amenable  to  suggestions  and  advice.  Careful  and 
accurate.  Able  to  take  the  handling  of  some  routine  without 
being  supervised  every  minute." 

"Ability  to  handle  men.  Initiative.  Familiar  with  my 
system  of  records  and  my  desires  as  regards  correspondence. 
Congenial — and  as  much  interested  in  the  work  as  I;  well- 
balanced  disposition;  being  able  to  handle  everything  with  a 
view  to  the  best  results  regardless  of  personalities  or  obstruc- 
tions." 


< 


CHAPTER  II 
A  DEFINITE   PROGRAM 

Only  by  a  system — that  is,  by  something  that  will  work 
automatically^  precisely,  accurately — can  one  secure  the  full- 
est returns  from  his  striving. — Walter  H.  Cottingham, 
President,   Sherwin-Williams  Company. 

The  Coherent  Program  Which  Gets  Results 

The  statements  explaining  the  success  of  individuals,  cited 
in  the  preceding  chapter,  are  all  filled  with  human  interest. 
Yet  the  man  anxious  to  advance  does  not  find  in  such  state- 
ments the  coherent  program  he  seeks.  They  are  isolated  com- 
ments, while  it  is  the  well-laid  campaign  which  yields  victory 
in  personal  management  as  elsewhere.  Systematic  planning 
of  such  a  campaign  means  long  and  careful  study.  It  involves : 
I.  Learning  and  comparing  the  views  of  notable  business 
men  concerning  their  own  careers,  their  methods  of  work,  the 
lessons  experience  has  taught  them.  These  statements  may 
be  gleaned  from  many  sources :  interviews,  biographies  and 
autobiographies,  magazines  and  newspapers,  legal  testimony, 
conversations,  correspondence.  They  should  be  supplemented 
and  corrected  by  the  comments  of  competent  observers. 

2.  Observing  men  for  oneself,  analyzing  with  care  every 
salient  item  about- them.  Of  supreme  value  are  the  truly  great 
business  executives,  those  pioneers  in  personal  efficiency  whose 
achievements  and  methods  bring  joy  to  the  discriminating 
observer.  Yet  in  this  study  the  failures,  and  the  mediocre,  are 
not  to  be  ignored,  for,  while  their  experience  is  negative,  it 
has  been  costly  to  these  persons  and  its  charge  should  not  be 
re-levied.  In  discovering  what  to  do  a  knowledge  of  what  not 
to  do  has  its  value. 

12 


A  DEFINITE   PROGRAM 


13 


The  man  who  has  made  any  progress  whatever  in  busi- 
ness has  of  course  been  making  such  observations  for  him- 
self already.  He  is  now  to  do  it  more  systematically  and  to 
apply  scientific  principles. 

3.  Drawing  freely  upon  a  number  of  related  sciences. 
Physiology,  psychology,  education,  ethics,  economics,  and  busi- 
ness administration  particularly,  contain  material  invaluable 
to  the  study  of  personal  management.  Organizing  this  mate- 
rial into  a  coherent  system,  that  is  to  say,  analyzing  and  classi- 
fying its  details  and  deducing  general  principles. 

This  part  of  the  work  a  busy  man  can  hardly  find  time 
to  do  for  himself.  Nor  could  he  trust  fully  his  own  perspec- 
tive. He  needs  the  help  of  a  good  book  which  will  present 
essentials  in  compact  and  reliable  form. 

4.  Finally,  most  important  of  all,  making  this  system  one's 
own,  its  superior  effectiveness  so  woven  into  the  personahty 
as  to  appear  a  heritage  from  nature. 

This,  of  course,  must  be  the  contribution  of  the  reader, 
the  student,  himself.  The  Ht  of  the  book  depends  on  how 
well  it  is  shaped  by  the  individual  to  his  own  needs. 

Standardization  the  Key  Principle 

The  development  of  first-class  practice  in  the  management 
of  oneself,  can  be  completed  at  a  very  great  saving  in  time 
and  effort  provided  we  utilize  consistently  a  certain  key  prin- 
ciple— standardization. 

There  is  always  a  one  best  way  of  doing  everything. 

In  the  yards  of  the  Bethlehem  Steel  Company  this  one 
best  way  was  introduced  into  shoveling.  Without  longer 
hours  or  harder  work,  output  was  increased  from  sixteen  tons 
to  fifty-nine,  wages  from  $1.15  to  $1.88,  and  ton  cost  to  the 
company,  all  expenses  included,  was  reduced  from  seven  and 
one-fifth  cents  to  three  and  one-third. 

In  the  stenographic  department  of  a  large  office  standardi- 


H 


TODAY'S  WORK  AND  BEYOND 


zation  resulted  in  wage  increases  averaging  twenty-two  per 
cent,  a  cost  reduction  from  $7.69  per  thousand  square  inches 
of  typed  matter  to  $2.58,  a  lessened  overhead  and  a  marked 
gain  in  accuracy. 

In  a  sales  organization  rule-of-thumb  was  attaining  an 
average  business  per  salesman  of  $18,000;  standardization 
with  regard  to  personnel,  territory,  sales  canvasses,  and  super- 
vision brought  this  average  up  to  $39,000. 

Practically  every  forward-looking  man  in  business  is  an 
adherent  of  this  principle  as  regards  the  operation  of  ma- 
chinery and  the  direction  of  the  labor  of  subordinates.  As 
the  head  of  a  personal  enterprise  in  which  production,  sales, 
accounts,  and  finance  are  necessary  activities,  the  executive 
can  gain  as  much  from  standardization  as  in  the  operation  of 
his  factory's  machinery. 

The  situation  which  confronts  men  in  business,  conse- 
quently, can  be  summarized  in  the  form  of  two  proportions : 

1.  Opportunity  in  the  form  of  increased  need  for  execu- 
tive ability  is  today  general,  with  prospects  for  the 
future  distinctly  encouraging;  and 

2.  Standardization  affords  the  method  by  which  to  "cash 
in"  on  these  opportunities  because  it  means  seeking  out 
and  putting  into  operation  the  one  best  way  of  doing 
things. 

A  Policy  of  Preparedness,  Whatever  the  Present  Position 

A  certain  persistent  error  cuts  short  the  career  of  many 
a  junior  executive  and  chains  numberless  clerks  to  their 
routine  tasks,  namely,  the  view  that  while  the  heads  of  big 
organizations  must  of  course  be  highly  skilled  it  does  not 
matter  a  great  deal  how  men  lower  in  the  ranks  do  their  own 
work.  Once  we  have  been  promoted  to  those  positions,  the 
lower  rank  person  possibly  adds  to  the  observation,  it  will  be 
time  to  train  our  powers. 


A  DEFINITE   PROGRAM 


15 


The  man  who  puts  off  developing  his  capacity  until  high 
rank  has  been  attained  thereby  locks  the  door  against  him- 
self and  throws  away  the  key.  By  his  own  act,  he  condemns 
himself  to  sweat  under  routine  burdens  like  a  stupid  pack- 
horse,  to  spend  his  days  as  a  mere  drudge,  and  to  let  die  un- 
realized his  inherent  impulse  toward  high  achievement. 

The  department  head  in  a  big  corporation,  the  man  at  the 
head  of  a  small  organization,  have  in  today's  activities,  no 
matter  how  limited  their  scope  may  seem,  a  complete  training 
course  in  management,  if  they  care  to  make  it  so.  Rockefeller, 
Carnegie,  Harriman,  Marshall  Field,  and  the  other  builders  of 
American  business  had  made  their  careers  long  before  they 
were  operating  on  a  large  scale,  before  they  were  in  the 
world's  eye,  because  they  had  already  fashioned  and  matured 
the  use  of  their  methods'. 

The  matters  most  important  for  executive  training  as  they 
will  be  taken  up  in  the  chapters  which  follow,  have  been 
grouped  under  these  headings : 

1.  The  Basis  of  Personal  System 

2.  The  Dispatch  of  a  Day's  Work 

3.  The  Thinker  in  Business 

4.  Personal  Dynamics 

5.  Personal  Finance 

6.  A  Man  Among  Men 

Where  can  be  discovered  a  position  which  does  not  require 
in  some  measure  the  exercise  of  the  powers  here  analyzed  and 
described,  which  leading  executives  possess  in  high  degree? 
The  proprietor  of  a  tiny  factory  or  the  junior  executive  who 
feels  himself  still  far  from  the  centers  of  business  power  can 
so  ground  himself  today  in  the  principles  of  management  that 
the  present  position,  because  the  man  who  holds  it  has  grown 
in  capacity,  becomes  a  stepping  stone  to  better  things.  This, 
the  correct  point  of  view,  transforms  clerkships  into  training 


l6  TODAY'S  WORK  AND  BEYOND 

places  for  managerships,  managerships  into  training  places 
for  corporation  headships.  The  business  career  itself  becomes, 
or  it  should  be,  a  continuous  apprenticeship. 

The  policy  of  preparedness  is  the  policy  of  foresight  and 
vision.  Its  goal  is  "The  Beyond"  but  it  sees  in  "Today's 
Work"  the  essential  steps  to  take  now. 


Exercises 
How  to  Study 

In  order  to  become  personally  efficient  in  business,  mere  longings 
or  even  high  ambitions  will  not  suffice;  you  must  move  forward  ac- 
cording to  a  definite  program. 

"Usually  when  a  man  falls  short  of  success,"  says  C.  D.  Peacock, 
President  of  the  C.  D.  Peacock  Company,  "the  trouble  lies  in  some 
specific  direction.  Whatever  the  fault,  I  believe  that  men  could  edu- 
cate themselves  out  of  it,  if  they  really  resolved  to  do  so  and  went 
about  it  intelligently." 

Let  us  take  up  here  the  problem  of  how  to  study.  The  right 
method  will  not  only  greatly  increase  your  mental  output  in  pursuing 
the  subject  now  under  consideration,  but  prove  of  much  benefit  in 
studying  the  annual  reports  of  your  company,  articles  in  business 
magazines,  lectures  delivered  before  your  club,  and  the  like. 

Set  up  a  Specific  Purpose  for  Your  Study.  With  a  sheet  of  paper 
before  you,  jot  down  answers  to  these  questions :  What  is  my  chief 
purpose  in  studying  this  subject?  What  minor  purposes  have  I  in 
studying  it?  What  benefits  am  I  to  derive?  Do  not  destroy  this 
memo,  but  keep  it  at  hand  so  that  in  passing  from  chapter  to  chap- 
ter you  may  see  the  gradual  achievement  of  your  purpose. 

Supplement  the  Author's  Statements  with  Your  Own  Thoughts. 
What  you  seek  is  not  knowledge,  mere  facts,  but  a  science  of  achieve- 
ment which  applies  to  your  own  work.  In  reading  these  chapters 
you  must  be  an  active  partner.  "When  you  come  to  a  good  book," 
says  John  Ruskin,  "you  must  ask  yourself,  'Am  I  inclined  to  work 
as  an  Australian  miner  would?  Are  my  pickaxes  and  shovels  in  good 
order,  and  am  I  in  good  trim  myself,  my  sleeves  well  up  to  the  elbow, 
and  my  breath  good,  and  my  temper?'  Your  pickaxes  are  your  own 
care,  wit,  and  learning;  your  smelting  furnace  is  your  own  thoughtful 
soul.  Do  not  hope  to  get  at  any  good  author's  meaning  without  these 
tools,  and  that  fire." 

Turn  to  a  page  that  you  have  just  read,  page   14,   for  example. 


A   DEFINITE   PROGRAM 


17 


Take  a  second  sheet  of  paper  (use  paper,  for  this  encourages  more 
definite  thinking),  then  running  down  this  page,  line  by  line,  note 
the  various  ideas  of  your  own  which  supplement  the  author's  state- 
ments. Take  for  instance:  "A  policy  of  preparedness,  whatever  the 
present  position,"  What  ideas  does  this  suggest  to  you?  When 
you  have  reached  the  last  line,  survey  the  two,  the  printed  page  and 
your  list.  In  working  out  a  science  of  achievement  adapted  to  your 
own  problems,  what  is  your  opinion  of  yourself  as  an  active  partner  ? 

Get  at  the  Essential  Ideas.  Ideas  are  not  all  of  equal  value;  they 
form  no  plain  but  a  series  of  peaks  and  valleys.  Skilled  readers  like 
Carlyle,  who  was  able  to  master  a  dozen  books  in  a  day,  mount  these 
peaks  of  thought  in  mapping  out  their  intellectual  journeys.  Obedi- 
ent to  no  false  notions  of  thoroughness,  they  seek  only  essentials. 
When  these  are  found  they  should  be  pondered  over,  memorized, 
woven  into  your  mind,  in  short,  made  your  own. 

On  a  third  sheet  of  paper  make  a  brief  outline  of  this  chapter, 
numbering  in  order  what  you  regard  as  the  main  ideas  advanced, 
and  indenting  under  each  of  these  some  of  the  minor  points  made. 
In  reading  later  chapters  use  some  system  of  marking  the  page  which 
will  accomplish  this  same  result.  For  example,  a  single  vertical 
mark  along  the  margin  may  indicate  that  this  particular  part  is  worth 
reviewing,  a  double  line  that  it  should  be  thoroughly  mastered,  a 
triple  line  that  it  ought  to  be  memorized.  Or  sentences  summarizing 
important  ideas  may  be  enclosed  in  parentheses,  or  underscored,  or 
doubly  underscored. 

The  particular  methods  employed  are  open  to  choice,  but  the 
principle  is  clear;  to  get  at  the  heart  of  a  book  you  must  cultivate 
the  sense  for  relative  values.  What  this  plan  really  amounts  to  is 
the  requirement  that  you  apply  the  principles  of  organization,  with 
which  you  are  familiar  in  business,  to  the  work  done  by  your  own 
mind. 

Apply  the  Test  of  Experience  to  What  You  Read.  You  will  have 
laid  before  you  the  experience  of  many  executives.  Nevertheless, 
what  you  really  desire  is  not  their  ideas  or  the  author's  ideas,  but 
solely  those  ideas  which  will  bring  results  for  you.  Your  judgment, 
calm,  unbiased,  judicial,  must  here  be  the  test.  As  you  read  sentence 
after  sentence,  ask  yourself  such  questions  as  "Is  this  reasonable? 
What  has  been  my  experience  upon  this  point?  Is  this  experience 
of  mine  extensive  enough  to  warrant  me  in  accepting,  or  rejecting, 
this  statement  now?"  In  later  chapters  it  will  be  well  to  use  some 
marking  scheme,  as  an  "O  K"  for  things  you  distinctly  approve,  a 
"?"  for  things  doubtful,  an  "X"  for  disapproval. 

Supposing  you  do  thus  mark  a  chapter  today,  would  you  upon 


l8  TODAY'S  WORK  AND  BEYOND 

rereading  this  chapter  a  year  hence  agree  fully  with  the  judgments 
now  made?  Why  not?  Answering  these  two  questions  thoughtfully 
will  guard  you  against  dogmatic  and  arbitrary  judgments,  from  idle 
fault-finding  or  mere  quibbling.  As  Sir  Francis  Bacon  advises  so 
admirably,  "Read  not  to  contradict  and  confute,  nor  to  believe  and 
take  for  granted,  nor  to  find  talk  and  discourse,  but  to  weigh  and 
consider." 

When  you  do  weigh  and  consider,  when  you  apply  to  everything 
you  read  the  test  of  your  own  experience,  you  are  forever  free  from 
servility  and  slavish  adherence  to  authority.  Such  study  develops  in 
you  open-mindedness,  initiative,  self-reliance,  self-control — qualities 
emphatically  worth  while  to  every  business  man. 

Put  the  Ideas  You  Have  Gained  into  Use.  Of  what  value,  finally, 
is  any  idea  to  you  ?  Does  it  not  depend  upon  what  it  will  do  for  you  ? 
If  it  will  not  serve  you,  if,  in  short,  it  will  not  work,  then  it  is  like 
dead  stock  on  a  retailer's  shelves  or  capital  sunk  in  out-of-date  ma- 
chines. But  the  result-getting  idea  is  like  a  mill  constantly  grinding 
fine  flour.  Here  we  have  the  test — an  idea's  value  is  what  it  will 
produce  for  you — but  the  only  way  to  apply  this  test  is  through 
actual  practice. 


PART  II 
THE  BASIS  OF  PERSONAL  SYSTEM 

/  have  never  known  of  a  great  business  success  without 
a  personality.  I  have  never  known  of  a  great  personality 
zuithout  a  system. — Henry  C.  Lytton,  President,  The  Hub. 

One  should  supervise  details,  but  not  let  them  absorb  him. 
Frank  W.  Woolworth. 


CHAPTER  III 

HANDLING  DETAILS 

Have  a  well-considered  system  of  doing  things,  definite 
and  businesslike,  not  an  imitation  of  something  else,  hut  one  ^r 

designed  for  your  own  use. — John  Calder,  President,  Inter- 
national Motor  Company. 

Victim  or  Master  of  Details 

A  man  does  not  advance  far  in  business  before  its  burden 
of  detail  commences  to  press  upon  him.  The  typewriter  has 
simplified  correspondence,  but  it  brings  more  letters.  The 
telephone  is  a  wonderful  device,  but  it  means  more  calls.  The 
mail  and  express  services,  the  telegraph,  railroads,  and  steam- 
ships— and  within  his  organization,  advertising,  division  of 
labor,  large-scale  production — are  all  indispensable  in  modern 
business,  but  by  their  weight  of  detail  they  all  multiply  the 
burden  of  the  man  who  must  carry  the  enterprise.  The  first 
step  in  personal  efficiency  for  the  executive  consists  in  learn- 
ing how  best  to  handle  this  burden  of  detail. 

The  day's  routine  is  alike  omnipresent,  necessary,  and  yet 
insidious  in  its  ultimate  influence.  The  standardization  of  the 
day's  routine,  accordingly,  affords  the  true  basis  of  personal 
system. 

How  J.  Pierpont  Morgan  Handled  Details 

The  following  incident  in  the  life  of  the  late  J.  Pierpont 
Morgan  has  often  been  misinterpreted  with  reference  to  the 
great  financier's  way  of  handling  details. 

One  day  in  the  Federal  Building,  Mr.  Lamb  as  opposing 
lawyer  was  cross-examining  Mr.  Morgan  about  the  purchase 

21 


22        THE  BASIS  OF  PERSONAL  SYSTEM 

of  $15,000,000  of  Northern  Pacific  stock  in  1901.  The  finan- 
cier sat  on  one  side  of  the  table ;  the  lawyer  on  the  other. 

*'How  much  did  that  stock  cost?" 

"Haven't  any  idea." 

"How  much  did  your  firm  make  out  of  it?" 

"I  don't  know." 

"Well,  did  you  make  one  million  or  ten  million?" 

"I  tell  you  I  don't  know.  I  don't  attend  to  the  details. 
I  said  'Buy  it.'  Steele  knows  about  the  details;  he'll  tell  you 
about  that!" 

Now  it  is  important  not  to  miss  the  point  here.  There  are 
those  who  quickly  read  into  the  attitude  of  the  financier  an 
easy  solution  for  the  problem  of  details.  Ignore  them,  scorn 
them  as  nuisances  to  be  brushed  aside!  Such  observers  over- 
look the  closing  sentence  of  the  significant  little  dialogue. 
Although  Mr.  Morgan  did  not  know  the  details,  Steele  did! 

Mr.  Morgan  when  he  made  those  remarks  was  a  battle- 
scarred  veteran  of  finance,  the  ripened  product  of  a  career  of 
masterly  administration.  Years  before,  as  a  young  bank 
clerk,  he  dug  relentlessly  into  the  details  of  each  task  with 
which  he  was  entrusted.  Now  he  selected  competent  and 
capable  men  to  watch  those  details  with  close  care  so  that  he 
no  longer  needed  to  give  them  his  personal  attention. 

Business  Knowledge  Which  Gets  Down  to  Bed-Rock 

The  man  who  at  no  time  in  his  career  pays  attention  to 
^      detail  builds  his  house  upon  the  sand.    The  storms  of  adversity 
which  some  time  or  other  test  every  business  structure  will 
detect  certain  weaknesses  in  his  organization  and  it  will  fall. 

"Although  everything  is  being  done  on  a  larger  scale," 
observes  James  Logan  of  the  United  States  Envelope  Com- 
pany, "there  never  was  a  time  when  the  smallest  details  of  a 
business  had  to  be  watched  so  closely  as  at  present." 

The  organizations  which  forge  ahead  today  in  the  race  for 


HANDLING  DETAILS 


23 


Ol( 


business  supremacy  tolerate  less  and  less,  on  the  part  of  those 
connected  with  them,  rash  undertakings,  "I  believe's,"  and  (fj( 
"Guess  so's."  Their  executives  find  it  increasingly  true  that 
in  order  to  carry  their  responsibilities  they  must  possess  a 
business  knowledge  which  gets  down  to  bed-rock.  Bed-rock 
in  this  particular  sense  means  the  stratum  of  fundamental, 
unavoidable  details  which  Hes  at  the  bottom  of  every  great 
business  structure.  In  order  to  do  his  own  work  well,  it  is 
essential  for  the  executive  to  know  the  various  elements  and 
processes  which  enter  into  the  business. 

It  is  a  symptom  of  wasteful  nervousness  and  inefficiency 
for  a  department  manager  to  sharpen  pencils,  fill  fountain 
pens,  or  run  errands.  It  is  just  as  wasteful  for  him  to  spend 
his  strength  on  the  minute  steps  of  production,  distribution, 
etc.  But  in  order  to  arrange  work  for  subordinates  it  is  neces- 
sary to  comprehend  their  duties. 

The  executive  sees  the  duties  of  his  subordinates,  not  as 
they  see  them,  but  in  the  bigger  relation  of  all  the  different 
cogs  and  wheels  to  the  vast  business  machine.  The  essential  ff^ 
thing  is  not  so  much  that  the  chief  should  be  able  to  put  him- 
self in  the  employee's  place  as  that  he  should  be  able  to  place 
the  employees,  every  one,  in  their  proper  place. 

Systematic  Care  for  Details 

That  is  to  say,  if  the  executive  engulfs  himself  in  a  sea  of 
details,  it  is  fatal  to  the  business  and  to  his  career;  if  he  ignores 
them,  it  is  equally  fatal.  The  solution  of  the  problem  must 
come  through  standardization,  proper  distribution  of  respon- 
sibility, system.  Details  must  be  watched,  but  plans  must  be 
devised  for  watching  them  with  maximum  accuracy  and  mini- 
mum effort. 

This  subject,  it  should  be  noted,  is  of  even  greater  impor- 
tance for  the  executive  who  is  on  his  way  up — a  department 
manager  or  the  head  of  a  small  but  growing  concern — than 


24  THE  BASIS   OF  PERSONAL  SYSTEM 

for  the  man  already  at  the  top  of  a  great  organization.  For 
such  an  ambitious,  growing  man  the  following  maxims  may 
serve  as  a  guide  in  his  work  of  organizing  and  standardizing 
his  activities : 

1.  However  deep  an  immersion  in  details  a  man's  pres- 
ent duties  require,  the  business  career  permits  a  consistent 
rise  until  like  Morgan,  apprenticeship  served,  he  may  eventu- 
ally hold  easy  mastery. 

2.  The  rate  of  his  progress,  whatever  the  stage  of  advance- 
ment already  reached,  depends  largely  upon  his  handling  so 
efficiently  the  details  which  fall  within  his  care — either  per- 
sonally or  through  wisely  directed  subordinates — as  to  have 
leisure  to  do  the  big  thing  just  above. 

A  First  Aid  to  the  Memory — the  Memo 

L/0  The  first  rule  for  economy  of  time  and  effort  is  this :    Keep 

the  big  things  in  mind,  the  details  on  paper.  The  man  who 
does  not  "make  a  note  of  it"  is  an  intellectual  prodigal.  He 
wishes  to  give  his  time  and  attention  to  the  big  things — the 
$50,000  contract,  the  proposed  trade  advance  in  South  Amer- 
ica, the  new  branch  in  St.  Louis — but  scarcely  does  he  con- 
centrate upon  these  big  things  when  a  forgotten  house  con- 
ference, a  broken  luncheon  engagement,  or  a  misplaced  letter 
brings  him  sharply  back  to  routine  again. 
He  needs  a  first  aid  to  the  memory. 
Such  is  the  memo  system;  "make  a  note  of  it." 
The  method  is  very  important  in  note-making.  Henry 
Ward  Beecher  jotted  down  incessantly  upon  scraps  of  paper 
and  the  backs  of  old  envelopes  the  various  points  he  wanted  to 
remember;  but  however  brilliant  Mr.  Beecher's  sermons  were 
made  by  this  plan,  the  medium  he  employed  is  open  to  criti- 
cism. Paper  can  be  arranged  in  such  convenient  forms  that 
no  one  is  justified  in  using  odds  and  ends. 


HANDLING  DETAILS 


25 


The  Defects  of  a  Bound  Note-Book 

The  bound  note-book  is,  as  a  usual  thing,  unsatisfactory. 
If  printed  or  indexed  according  to  dates,  it  may  prove  con- 
venient as  an  appointment  memo,  or,  indexed  alphabetically, 
it  serves  well  enough  for  names  and  addresses.  But  it  soon 
becomes  filled  with  useless,  out-of-date  material,  through 
which  one  must  thumb  in  order  to  find  what  one  wants. 
Worse  still,  only  by  chance  does  one  make  notes  of  things  in 
the  same  order  in  which  he  prefers  to  take  them  up  later  on  ; 
yet  notes  which  are  bound  are  continually  seeking  to  dictate 
the  order  in  which  they  shall  receive  attention.  What  you 
want  is  consecutive  order  in  doing  things,  not  in  making  notes 
of  things  to  do. 

The  Loose-Leaf  Memo  System 

Loose-leaf,  ringed  note-books  avoid  inflexibility,  the  chief 
defect  of  the  bound  form.  They  can  be  obtained  in  a  variety 
of  sizes  and  styles.  If  you  carry  the  book  in  your  inside  coat 
pocket,  as  is  commonly  done,  you  should  avoid  the  larger  and 
more  bulky  styles.  It  would  be  advisable  also  in  selecting  the 
size  to  consider  its  relation  to  a  filing  system.  The  book  can 
easily  be  fitted  with  an  index,  according  to  date,  as  for  appoint- 
ments ;  according  to  alphabet,  as  for  names  and  addresses  and 
telephone  numbers ;  or  according  to  subject,  as  in  the  grocery 
salesman's  price  book.  It  is  possible,  of  course,  to  use  two,  or 
possibly  more,  indexes  in  one  book. 

A  simple  leather  folder,  in  which  loose  sheets  may  be 
placed,  forms  about  as  practical  a  system  as  any.  The  4x6 
size  is  easy  to  carry  in  the  inside  coat  pocket  and  as  the  supply 
of  sheets  can  be  replenished  at  will,  it  need  not  be  made 
bulky.  The  used  sheets  are  kept  on  top,  the  fresh  sheets  at  the 
bottom,  with  a  blotter,  trimmed  to  the  proper  size,  as  a  parti- 
tion between  them. 

Still  more  simple  is  the  vest-pocket  note  system,  merely 


26        THE  BASIS  OF  PERSONAL  SYSTEM 

loose  sheets  of  3  x  5  paper  carried  in  one  of  the  upper  vest 
pockets  and  replenished  at  need.  When  a  note  has  been  made, 
the  sheet  is  placed  in  another  pocket,  awaiting  its  final  dis- 
posal. The  elaborate  note  systems  which  we  often  see  have 
all,  no  doubt,  their  uses;  but  to  many  men  a  brief  trial  may 
prove  that  a  few  3x5  cards  slipped  into  the  vest  pocket  con- 
stitute the  most  convenient  method. 

Ruled  and  Printed  Memo  Sheets 

But  "system"  can  be  pushed  a  little  further  with  advan- 
tage. In  looking  over  old  memos,  a  man  often  discovers  him- 
self recording  the  same  sort  of  information. 

Perhaps  he  is  a  contractor  reporting  upon  jobs,  perhaps 
a  salesman  turning  in  credit  information.  In  any  case,  the 
frequent  occurrence  of  certain  items  to  be  jotted  down  should 
warn  him  that  standardization  is  possible,  and  lead  to  the 
adoption  of  a  ruled  or  printed  form.  The  makers  of  ringed 
books  are  able  to  supply  from  stock  the  forms  prepared  for 
day-books,  journals,  ledgers,  sales  records,  expense  accounts, 
pay-rolls,  mortgage  loan  records,  real  estate  listings,  and  the 
like.  Forms  devised  for  special  purposes  can  be  run  off  by 
any  printing  establishment. 

How  to  Dispose  of  Memoranda — The  Tickler 

Less  difficulty  usually  is  experienced  in  making  memo- 
randa than  in  caring  for  them  after  they  are  made.  Not  a  few 
men  keep  a  note-book  always  handy,  religiously  jotting  down 
items  which  they  thereupon  proceed  to  forget — a  quite  cor- 
rect procedure,  of  course.  But  they  then  go  one  step  further 
and  completely  ignore  the  memo.  The  memo  ignored  is  worse 
than  unmade,  because  it  is  deceptive.    Use  the  tickler! 

The  tickler  is  a  little  filing  device,  indexed  according  to 
dates.  It  has  usually  two  sets  of  guide  cards,  the  tabs  of  one 
being  printed   with  figures   for  the  thirty-one   days  of  the 


HANDLING  DETAILS  27 

month,  and  the  other  with  letters  for  the  twelve  months  of 
the  year.  (See  Figure  i.)  As  each  day  and  month  pass, 
the  respective  guide  card  is  set  to  the  back  of  the  box,  out  of 
the  way.  In  order  that  nothing  be  filed  for  Sundays,  it  is  well 
at  the  beginning  of  each  month  to  remove  the  Sunday  dates 
from  the  index.  When  one  looks  at  his  tickler  each  morning, 
that  day's  tab,  with  its  contents  of  things  for  today,  stands  at 
the  front  of  the  box. 


Figure  i.     The  Tickler 

This  tickler  is  a  convenient  type.     Its  index  is  arranged  for  the  week,  but  one  numbered 
consecutively   from   one   to   thirty-one   could   easily   be  substituted. 

An  Example  of  the  Tickler's  Use 

On  March  3,  let  us  say,  General  Manager  Smith  of  the 
Jones  Construction  Company  is  out  among  the  trade  work- 
ing up  new  business  and  late  in  the  afternoon  returns  to  the 
office  with  these  notes,  his  memo  system  being  3x5  cards 
carried  in  the  vest  pocket.     (See  Figure  2.) 

The  tickler  is  ready.  Mr.  Smith  dictates  to  Mr.  Crowell 
a  confirmation  of  an  appointment  with  the  representative  of 
the  Kalamazoo  Lighting  Company  arranged  by  Mr.  Barnes, 
then  drops  the  card  behind  the  March  15  tab.  He  files  the 
second  memo  relating  to  a  bid  from  Hedges  and  Company 
under  the  March  4  date,  since  he  must  take  up  that  item  with 
his  assistant,  Mr.  Brown,  who  has  charge  of  bids.  He  has 
already  had  a  promise  from  Mr.  Carson  that  specifications 


28  THE  BASIS   OF  PERSONAL  SYSTEM 

from  Hastings  and  Son  will  reach  him  April  2^,  so  he  drops 
that  memo  behind  the  April  guide,  to  remain  there  until 
April  I,  when  it  will  be  set  behind  the  tab  number  2^.  The 
fourth  memo,  relating  to  a  meeting  he  wishes  to  attend,  he 
slips  behind  the  March  29  tab.  The  general  manager's  mind 
is  free  to  deal  with  big  things  since  the  details  have  been  com- 
mitted to  paper. 

A  calendar  may  be  combined  with  the  tickler,  the  type 
shown  in  Figure  i  being  especially  convenient  in  this  respect. 
It  may  be  noted  that  the  index  shown  here  is  designed  for 
the  days  of  one  week,  not  for  a  month.  If  the  other  sort  of 
index  proves  of  more  service,  as  is  likely  to  be  the  case,  it  can 
easily  be  substituted. 

Simpler  Forms  of  the  Tickler  Method 

The  tickler  here  described  is  too  elaborate  for  the  man  who 
has  only  a  few  details  to  handle.  The  desk  calendar  pad  is 
more  convenient  for  his  purposes.  This  pad  has  a  separate 
sheet  for  each  day  of  the  year,  which  in  addition  to  such  items 
as  the  day  of  the  month,  the  day  of  the  week,  the  number  of 
days  of  the  year  passed,  has  blank  space  for  memoranda.  By 
simply  turning  ahead  to  the  proper  date,  entries  can  be  made 
for  any  day  of  the  year.  Such  a  pad  is  less  flexible  than  the 
tickler,  of  course,  in  that  items  not  attended  to  on  the  date 
specified  must  be  copied  in  transferring  them  to  later 
dates. 

An  even  simpler  system,  which  to  the  man  with  a  minimum 
of  detail  is  yet  entirely  adequate,  is  the  weekly  reminder  pad. 
One  sheet  serves  for  a  week,  and  blank  space  is  provided  for 
each  day's  items. 

The  Newspaper  Man's  Assignment  Book 

The  essential  feature  of  the  tickler  system  is  the  fact  that 
everything  which  must  be  attended  to  on  a  certain  day  is 


HANDLING  DETAILS 


^■C^(Uc..,,^JUL.I^c 


fS. 


/UL'CUilCcO  CULAji 


Figure  2.     Memo  Cards  for  Tickler 


29 


30 


THE  BASIS   OF  PERSONAL  SYSTEM 


through  its  use  automatically  brought  to  the  attention  on  that 
day,  and  at  no  other  time. 

The  assignment  book  used  by  newspaper  editors  may 
be  mentioned  in  this  connection,  since  it  is  really  a  form  of 
tickler.  This  book  at  the  beginning  of  the  year  is  blank,  save 
for  dates.  But  from  day  to  day  as  the  city  editor  learns  of 
political  conventions,  social  events,  lectures,  public  hearings, 
and  the  like,  he  proceeds  to  note  them  in  his  book  for  the  day 


DzPTS.  4  AND  6.    Mr.  Jones 

6/i     Provide    6    girls    Dept.    4 — 

Sale  6/s.  V 

6/1     Trans.     3    girls    Dept.     3    to 

Dept.   4. 
6/2     Investigate    complaint    silk — • 

Mrs.    Harris — on    my    desk.    V 
6/3     Get    rating     of     Parmer     No. 

106    for    advance    6/5.  V 

6/2     Cost      of     Parcels     Post     to 

Lamelton,    L.    I.?  V 

6/3     See   why   so   many   errors   in 

Dept.  4. 
6/3     See  why  so  many  returns  in 

Dept.    4.  V 

6/s     See  amount  of  sales  made  in 

Dept.    6    today.  V 

6/9     Why    wasn't    call    made    for 

wash   goods   last   Thurs,    at 

Mrs.   James   Brown's,      107 

W.    E.    Ave.?  .       V 

6/9     Tele.    Mrs.    Brown    and    give 

reason,    apologize.  V 

6/10  Why    is    Supply    Dept.    short 

on  blotters?  V 

6/13   Mr.       Jones       wants       entire 

Dept.    b    sales    for    6/15.        V 
6/13  Arrange    for    one    more    cash 

girl    Dept.    4,    6/13.  V 

6/1  s    Lights  in  Depts.  4  and  6  need 

cleaning.  V 

6/15  Better      porter      service      for 

Depts.    4   and   6.  _  V 

6/16  Have      windows      repaired — 

hard    to    raise.  V 

6/16  Mr.   Jones   wants   fan   in   his 

office.  V 

6/17  Mr.    Jones    will    give    3    girls 

for  Receiving  Room.  V 

6/17  Mr.  Jones  10  girls  for  Mon- 
day  sale   on    tables.  V 

(a) 


June  9,  1918 

Get    5    girls    for    sale    dresses    next 

Sat.  Dept.  29. 
Dept.    30    wants    3    extra    stock    girls 

today    only. 
Dept.    36    needs    3    or    4    more    sales- 
people Sat. 
See   why   paper   chute   bo   dusty. 
See  if  Engineer  repaired    dumb-waiter 

2nd  floor. 
Tell   carpenter  to  repair  packing  desk 

2nd  floor. 
Have   all   lights   cleaned    on   3rd    fl. — 

dirty. 
Ask    Mr.   Trinks   about   towel   supply. 
Broken  glass  on  table  2nd  fl. — repair. 
Miss    Smith    complains    slow    delivery 

Bronx. 
Are  girls  in  Dept.    14  on  time  morn- 
ings? 
Advance    salary    tomorrow    Miss    Neil 

No.    i8i7. 
Trans,  next  Men.   Miss  Ahl,  2149,  to 

Dept.   36. 
Why    wasn't    call    made    last    Thurs. 

for  wash  goods  Mrs.  James  Brown, 

:o7   W.   E.   Ave.? 
Tele.    Mrs.    Brown    and    give    reason, 

apologize. 


(b) 


Figure  3.     The   Memo   System   Devised   by   a   Busy    Department   Store 

Superintendent 


HANDLING  DETAILS  31 

scheduled.  Later  on  as  these  dates  are  reached,  such  items 
serve  as  assignments  for  reporters.  This  simple  device,  if 
used  methodically,  insures  well-filled  columns  to  the  readers 
and  frequently  a  valuable  "scoop"  to  the  paper. 

A  Department  Store  Superintendent's  Methods 

The  system  devised  by  E.  A.  Colby,  who  as  superintendent 
of  Lord  and  Taylor's  large  department  store  necessarily  han- 
dles much  detail,  merits  attention  as  another  special  form  of 
the  tickler.  On  his  rounds  through  the  store  Superintendent 
Colby  carries  a  small  loose-leaf  memo  book,  with  a  page  re- 
served for  each  department;  the  number  and  the  name  of  the 
department  head  appear  at  the  top.  (See  Figure  3a.)  When 
a  department  head  makes  a  request,  the  superintendent  turns 
to  the  page  designated,  enters  the  date,  the  request,  and  the 
date  when  action  is  desired. 

Upon  Mr.  Colby's  return  to  the  office  his  secretary  tran- 
scribes the  various  items  upon  sheets  of  the  same  size  but  dated 
consecutively,  entering  each  item  upon  the  second  sheet  accord- 
ing to  the  time  when  action  upon  it  is  desired.  For  example, 
Mr.  Jones,  called  upon  June  i,  makes  two  requests,  one  of 
them  for  immediate  action,  which  the  secretary  enters  upon 
the  sheet  for  that  day,  the  other  for  four  days  later,  which  is 
entered  upon  the  June  5  page.  Every  morning,  therefore. 
Superintendent  Colby  has  before  him  the  list  of  items  which, 
accumulating  upon  this  page  for  some  time  past,  demand 
action  today.  (See  Figure  3b.)  By  glancing  at  the  sheets  of 
later  date  he  can  tell  at  any  time  what  items  have  been  sched- 
uled for  these  days  and  make  his  plans  accordingly. 

*'My  assistant  uses  the  same  system,"  adds  Mr.  Colby, 
'Tn  this  way  I  am  constantly  aware  of  what  he  is  doing,  and 
should  he  or  I  or  both  of  us  be  absent  for  any  reason,  anyone 
could  pick  up  the  sheet  for  that  day  and  proceed  with  our 
work  in  good  order." 


32 


THE  BASIS  OF  PERSONAL  SYSTEM 


The  Tickler  as  a  Business  Getter 

The  tickler  method  may  be  used  in  many  other  ways.  Re- 
sourceful salesmen,  for  instance,  utilize  it  in  some  such  form 
as  shown  in  Figure  4,  to  ^'establish  a  point  of  contact"  with 
their  prospects.  Such  a  list,  slightly  modified  in  form,  is  per- 
haps even  more  useful  to  the  assistant  sales  manager. 


POSITION    7P7/icA<>ni4Y /ffxcu^^         FIRM      Cla/iA ,  M),<n:^^yr 
Mz^  /2eru/  ^AU?t/  ^6^oz£(!^  .<:Jm4^ /^ciicUe^. 


Figure  4.    Alphabetical  Filing 

Information    concerning   various   customers   filed   alphabetically    in    this   way   furnishes 
the   sales   manager   a   point   of    contact. 

Incoming  Material 

Memoranda  by  no  means  exhaust  the  list  of  details  to  be 
handled  by  the  executive.  Letters,  circulars,  catalogues, 
books,  and  trade  papers  flow  into  his  office  incessantly.  What 
is  to  be  done  with  them? 

The  one  best  way  here,  of  course,  is  to  use  a  filing  system. 
Systematic  filing,  by  means  of  which  orderly  storage  and 
swift  and  accurate  reference  are  secured  for  the  daily  accumu- 
lations of  letters  and  records  of  all  sorts,  has  been  an  indis- 
pensable part  of  the  growth  of  modern  business.  The  im- 
provement in  filing  methods  has  been  almost  incredible. 


HANDLING  DETAILS 


33 


Systematic  Filing  a  Matter  of  Course  in  Careful  Business 

Our  grandfathers  jabbed  the  firm's  letters  upon  hooks  or 
stowed  them  away  in  some  pigeonhole  or  drawer.  It  is 
scarcely  more  than  a  generation  ago  that  the  box  file  was  intro- 
duced, with  its  cover  opening  like  a  book  and  a  set  of  manila 
sheets  tabbed  alphabetically;  and  the  flat  file,  much  the  same 
in  style  but  more  substantial  and  elaborate.  Today  the  ver- 
tical file,  papers  arranged  on  edge  in  filing  cases  of  wood  or  of 
steel  built  in  standardized  size  and  form,  is  practically  uni- 
versal in  all  well-managed  business  houses,  large  or  small. 
Progressive  concerns  regard  it  as  an  essential  part  of  their 
work  to  devise  a  system  fitted  to  their  particular  organization 
and  to  provide  for  its  competent  administration. 

All  this  should  have  a  lesson  for  the  executive  in  the  man- 
agement of  his  personal  memoranda.  If  system  is  good  for 
the  general  organization,  it  is  equally  good  for  the  work  of 
the  man  who  administers  the  organization — or  a  division  of  it. 

Apply  the  Lesson  to  Your  Own  Work 

Yet  many  executives  have  failed  to  learn  this  lesson.  Even 
when  the  correspondence,  records,  memoranda  of  the  organi- 
zation, are  handled  with  the  utmost  care  and  efficiency,  their 
personal  offices  often  exhibit  astonishing  lack  of  system.  In 
not  a  few  offices  most  of  the  material  referred  to  above  is 
simply  piled  up  anywhere.  The  plan  seems  easy  enough,  but, 
judged  by  results,  it  is  grinding  hard.  No  one  can  afford  to 
dig  through  dust-covered  heaps  every  time  he  needs  some- 
thing, and  yet  he  cannot  run  the  risk  of  forgetting  that  the 
information  is  available,  or  of  ignoring  it  entirely  because  he 
is  too  lazy  to  hunt  for  it. 

The  executive  should  have  his  own  filing  system  planned 
according  to  a  simple  but  complete  scheme  of  classification — 
he  will  probably  find  the  alphabetic  method  most  convenient — 
and  kept  in  a  properly  arranged  vertical  cabinet.     A  single 


34  THE  BASIS   OF  PERSONAL  SYSTEM 

unit  file,  fitted  with  twenty-six  guides,  lettered  alphabetically, 
will  care  very  satisfactorily  for  the  average  man's  personal 
correspondence,  and  perhaps  leave  space  which  is  available 
for  other  purposes. 

The  vertical  filing  cabinet  itself  may  be  had  in  either  wood 
or  metal,  in  colors  to  match  the  regular  office  furniture,  in 
cap  size  or  letter  size,  and  in  varying  numbers  of  sections, 
such  as  single  units,  two  sections  vertical,  or  three  sections 
horizontal.  With  this  variety  of  patterns  available,  one  need 
not  encounter  serious  difficulty  in  fitting  the  vertical  cabinet 
into  his  office  equipment. 

The  more  bulky  catalogues,  together  with  books  and  such 
trade  papers  as  are  preserved,  are  preferably  stored  upon 
shelves.  Bookcase  units  to  rhatch  the  files  can  be  used  if  the 
additional  expense  is  not  too  great.  When  shelves  cannot 
otherwise  be  arranged  conveniently,  a  small  revolving  bookcase 
often  will  solve  the  problem. 

The  equipment  here  described  enables  the  executive  to  keep 
the  incoming  material  under  strict  control  as  it  moves  across 
his  desk  to  its  final  destination — a  file,  a  shelf,  or  the  waste- 
paper  basket. 

The  Idea  File — Mental  Staleness  and  Its  Antidotes 

The  executive  at  the  head  of  a  progressive  enterprise  gives 
of  himself  freely.  He  scatters  enthusiasm,  bright  sayings, 
point-driving  stories,  and  big  ideas  here  and  there  as  he  goes 
along.  After  a  time  the  disquieting  thought  is  apt  to  present 
itself  that  he  is  becoming  stale;  he  has  given  but  has  not 
grown ;  he  is  in  danger  of  mental  bankruptcy. 

Since  to  continue  effective  he  must  be  fertile  in  new  ideas, 
it  is  well  to  inquire  what  system,  if  any,  will  aid  him  in  meet- 
ing the  demand.  What  shall  he  do,  for  instance,  with  the 
choice  bits  of  information  which  come  along  daily?  An 
advertising  man  finds  in  his  mail  an  unusually  pulling  form 


HANDLING  DETAILS  35 

letter.  An  engineer  sees  in  his  technical  paper  an  article  on 
better  results  from  coal.  A  works  superintendent  learns  how 
a  manager  in  Pittsburgh, by  opening  up  a  dead-end  job,  secures 
a  higher  grade  of  applicants.  Shall  such  items,  the  results  of 
much  thought  and  costly  experiment  on  the  part  of  other  men, 
escape  him?  With  his  own  puzzling  questions  to  settle,  shall 
he  merely  say  helplessly :  "If  I  could  only  lay  my  hands  on 
that  article  I  was  reading  somewhere  last  month — ." 

Digging  through  piles  of  trade  papers  in  search  of  what 
he  knows  is  in  there  somewhere,  or  vaguely  trying  to  remem- 
ber its  location,  is  poor  business.   Such  material  should  be  filed. 

The  scrap-book  has  been  discarded  as  inefficient,  partly 
because  it  commonly  has  no  scheme  of  indexing.  The  envelope 
system,  in  which  each  subject  or  topic  has  its  particular  envel- 
ope, is  so  time-consuming  and  laborious  that  few  persons  keep 
it  going  consistently.  The  vertical  file,  however,  offers  a 
device  both  easy  and  rapid. 

The  Retailer  Keeps  Up  to  Date 

In  one  of  the  smaller  cities  retailer  Norling,  let  us  say, 
owns  a  department  store  which  he  wants  to  make  the  up-to- 
date  store  of  that  region.  In  thinking  over  the  matter,  he 
decides  that  the  vital  problems  of  his  business  center  around 
the  following  topics : 

1.  Buying  methods 

2.  Care  of  stock 

3.  Store  equipment 

4.  Newspaper  advertising 

5.  Direct  advertising 

6.  Window  displays 

7.  Salesmanship 

8.  Special  sales 

9.  Handling  employees 
10.  Mail-order  competition 


36  THE  BASIS   OF  PERSONAL  SYSTEM 

11.  Charge  accounts 

12.  Delivery  problems 

13.  Store  leaks 

14.  Accounting 

Accordingly,  he  secures  a  single  unit  vertical  file  and  with 
some  pressboard  guides  indexes  it  by  writing  on  the  respective 
tabs  the  foregoing  titles.  When  he  next  reads  in  his  trade 
paper  the  details  of  how  a  Mr.  Cowley  in  Nebraska  is  winning 
mail-order  trade  from  a  city  competitor,  he  files  the  sheet  under 
"Mail-order  competition."  In  the  same  paper  he  finds  repro- 
duced the  prize-winning  display  window  of  a  recent  contest, 
and  he  slips  this  picture  into  "Window  displays."  His  mind 
becomes  more  and  more  alert,  because  he  is  now  an  active 
seeker  of  ideas;  and  his  business  becomes  more  and  more 
profitable,  because  he  puts  into  service  the  most  productive 
ideas  of  many  merchants. 

The  Idea  File  in  Operation 

When  the  idea  file  is  used  extensively,  the  best  way  is 
merely  to  mark  with  a  number  only  the  articles  desired,  leav- 
ing to  a  secretary  the  clipping  and  filing.  In  case  these  items 
are  found  in  a  book  from  which  it  is  not  convenient  to  remove 
the  leaves,  the  executive  places  the  file  number  on  a  blank 
page  which,  for  the  time  being,  serves  as  a  book-mark,  and 
indicates  by  pencil  on  the  margin  the  paragraphs  or  sentences 
to  be  copied. 

When  the  material  preserved  consists  of  miscellaneous 
clippings  and  quotations,  a  vertical  letter  file  is  appropriate. 
But  suppose  the  ideas  one  wishes  to  save  are  his  own,  jotted 
down  here  and  there  on  memo?  The  letter  size  file  is  then 
cumbersome,  and  a  card  index,  3x5,  4x6,  or  5x8,  corre- 
sponding to  the  size  of  his  memo  paper,  is  more  satisfactory. 
This  index,  of  course,  will  also  serve  for  clippings,  provided 
these  are  folded.    Such  a  "brain  box"  is  capable  of  aiding  a 


HANDLING  DETAILS 


37 


busy  man  considerably,  and  in  order  to  make  a  start  in  its 
use  he  need  only  draw  up  a  list  of  his  problems  which  there- 
upon serves  as  the  index. 

An  Increased  Supply  of  Facts 

A  real  estate  operator,  for  instance,  in  trying  to  interest 
prospects  in  his  surburban  houses,  encounters  such  objections 
as  "can't  afford  to  buy,"  "neighborhood  undesirable,"  "too  far 
from  the  city,"  "climate  unhealthful,"  and  the  like.  Worse 
still,  he  finds  his  regular  sales  canvass  becoming  stale.  Accord- 
ingly, he  takes  a  dozen  guide  cards,  4x6  size,  let  us  say,  to 
correspond  with  his  memo  paper,  writes  these  stock  objections 
on  the  tabs,  puts  aside  another  set  of  cards  for  "liveners,"  and 
places  them  all  in  a  twenty-five  cent  card  index. 

In  reading  the  evening  paper  soon  afterwards,  he  learns 
through  the  social  columns  that  Mrs.  De  Style  has  just  given 
a  garden  party  to  the  smart  set,  whose  names  are  mentioned. 
This  item  quickly  finds  its  way  behind  the  "Neighborhood 
undesirable"  tab;  it  will  prove  itself  good  ammunition  later. 
In  a  health  report  which  comes  to  his  attention  soon  after- 
wards appears  a  column  of  unusually  favorable  statistics;  into 
the  "Climate  unhealthful"  place  this  goes.  One  dull  after- 
noon he  digs  into  the  tax  records  and  the  material  there 
unearthed,  a  broadside  in  its  strength  of  conviction,  he  slips 
behind  the  "Can't  afford  to  buy"  tab.  A  clever  little  story 
emphasizing  the  distinction  between  house  and  home,  he  files 
away  as  a  "Freshener."  What  the  real  estate  operator  really 
does  here  is  to  build  up  an  auxiliary  brain.  His  index  fur- 
nishes him  definite  and  copious  information  which  results  in 
more  houses  sold. 

A  Loose-Leaf  Idea  File 

An  idea  file  can  very  readily  be  made  of  a  loose-leaf  note- 
book, properly  indexed.     Although  as  a  usual  thing  this  will 


38  THE   BASIS   OF   PERSONAL   SYSTEM 

not  prove  so  convenient  as  the  regular  filing  case,  it  possesses 
certain  advantages  and  is  mentioned  here  chiefly  to  emphasize 
the  fact  that  in  form  the  idea  file  admits  of  considerable  varia- 
tion. 

"It's  almost  impossible  for  me  to  remember  the  hundred 
and  one  plans  I  have  ahead  of  me — and  to  file  a  thing  often 
means  to  lose  sight  of  it,"  says  D.  B.  Otzen,  a  progressive  Chi- 
cago executive.  "An  every-day  loose-leaf  binder  solved  my 
problem. 

*'The  plans  I  want  to  use  are  condensed  and  rewritten  on 
loose-leaf  sheets,  and  filed.  I  use  a  separate  page  for  each 
subject,  containing  both  my  own  and  the  other  man's  new 
ideas.  When  a  particular  method  has  been  worked  out  and 
adapted,  I  tear  out  the  corresponding  page — so  that  only  'live' 
material  stays  in  the  book. 

"Thumbing  through  my  'brain  partner'  three  or  four  times 
a  month  jogs  up  the  memory.     Here  are  the  very  plans  I 


Subject    

Subhead    

Title   

Author    

Source    

Datp    . 

Remarks : 

Figure  5.    An  Index  Card  for  Books  and  Magazines 

This  card   when   filed   serves  to    introduce   system    into   a   man's   reading.     The   filling 

out  of  the  "Remarks"  tends  to  impress  the  information  upon  the  mind  and  the  index 

is  useful   for   locating  articles   when   desired   later. 


HANDLING  DETAILS 


39 


want,  when  I  want  them.  The  binder  saves  my  time,  sug- 
gests new  ideas,  or  shows  where  I  have  neglected  opportunities 
that  might  make  hundreds  of  dollars  for  us." 

An  Index  for  Books  and  Articles 

A  reader  who  wishes  to  preserve  his  trade  papers  in  bound 
form  instead  of  removing  certain  pages  from  each  issue  and 
filing  them,  or  who  consults  books  from  which  it  is  imprac- 
ticable to  remove  pages,  may  utilize  a  card  index  in  keeping 
track  of  particular  articles.  A  classification  according  to  sub- 
jects, with  whatever  subheads  may  be  desired  under  each,  is 
drawn  up  in  the  same  way  as  for  the  idea  file.  Here,  however, 
instead  of  the  material  itself  being  filed,  a  3  x  5  card  is  filled 
out  by  which  the  material  can  be  located.     (See  Figure  5.) 

Conclusion 

The  method  of  recording  items  for  reference  does  not 
much  matter — the  letter  file,  the  card  index,  the  ringed  note- 
book, the  loose-leaf  scrap-book,  the  desk  drawer,  or  even  the 
vest  pocket.  But  does  he  let  valuable  ideas  slip  away  from 
him,  or  does  he  catch  them  and  have  them  at  hand  when 
needed?  That  is  the  real  crux  of  the  problem  faced  by  all  men 
in  business.  The  executive,  whether  the  head  of  a  house  or 
a  department  manager  and  whatever  his  line  of  business,  is  in 
a  stream  of  business-getting  ideas.  Beyond  question  he  can 
use  some  form  of  brain-box  with  profit. 

While  we  have  been  setting  into  operation  the  various 
methods  discussed  thus  far,  what  has  happened  to  the  detail 
which  pours  in  upon  our  desks?  In  large  measure  it  has 
already  been  cared  for. 


Exercises 
Methods   You   Are   Using 

It  is  well,  first  of  all,  to  know  what  methods  you  are  actually  fol- 
lowing.   Suppose  you  take  stock,  using  Test  Chart  i  for  this  purpose. 


40 


THE  BASIS  OF  PERSONAL  SYSTEM 


For  the  Purpose  of — 

I  Now  Use — 

Making  memoranda 

Caring  for  memoranda 

Disposing     of      incoming 
material 

Keeping     tab     on     good 
ideas 

Test  Chart  i.     How  I  Am  Handling  Details 


In  view  of  what  this  chart  shows,  do  you  succeed  in  keeping  the 
big  things  in  mind,  the  details  on  paper?  Or  do  you  find  yourself 
trying  to  remember  everything?  Do  you  make  embarrassing  mistakes, 
such  as  forgetting  social  engagements?  Do  you  have  casual  lapses 
of  memory,  such  as  letting  slip  the  special  order  promised  ?  Are  you 
nervous,  haunted  with  vague  feelings  that  something  is  being  for- 
gotten? Most  important  of  all,  is  your  output  limited  because  the 
handling  of  details  is  left  unstandardized  ? 

Not  Too  Much  Apparatus 

The  array  of  apparatus  found  on  display  at  the  stationery  store 
and  described  in  the  catalogues,  circulars,  and  books  issued  by  the 
manufacturers  is  apt  to  prove  somewhat  confusing.  A  man  can 
easily  overload  himself  even  with  pieces  of  apparatus  individually 
good.  Suppose  then  that  we  subject  this  assortment  offered  us  for 
purchase  to  these  tests : 

Simplicity:  Can  I  easily  get  into  the  habit  of  using  this  particu- 
lar device?  Is  it  simple  to  operate  afterwards?  Can  it  be 
readily  carried  or  stored  in  my  office? 


HANDLING  DETAILS 


41 


Accuracy:  Can  it  be  depended  upon  when  used  properly?  What 
are  the  chances  for  making  errors? 

Low  Cost:  What  is  its  initial  cost?  Its  durability?  The  cost 
for  its  required  supplies? 

Adequacy:  Does  it  meet  my  present  needs?  Can  its  capacity  be 
expanded  as  I  grow? 

Appropriateness :  Does  it  dovetail  with  my  other  pieces  of  ap- 
paratus so  that  altogether  my  methods  of  handling  details 
represent  a  coherent  program? 

When  it  appears  that  as  a  result  of  these  tests  certain  pieces  of 
apparatus  have  been  decided  upon,  let  us  list  all  these  items  in  the 
second  column  of  Test  Chart  2.  You  may  have  selected  two  or  more 
pieces  of  apparatus  for  filing  purposes,  or  for  the  recording  of  memo- 
randa, etc.,  but  for  the  purpose  of  grading,  these  will  be  considered 
in  each  case  as  a  unit.    Does  what  you  have  selected  for  the  making 


Item 

Apparatus 
Selected 

►J 

PL, 

in 

a 

< 

U 

u 

<: 

> 
m 

w 

w 
1— 1 

a 

H 

< 
Of 

Q 

< 

Q 
U 
J 

< 
H 
W 
> 
0 

Q 

NOTE-BOOKS 

Tickler 

Files  (regular) 

Idea  file 

Total  Credits 

Points 

Test  Chart  2.     Standardizing  the  Apparatus  for  Handling  Details 


42  THE  BASIS   OF  PERSONAL  SYSTEM 

of  memoranda  represent  simplicity  to  the  loo  per  cent  degree? 
If  so,  place  a  figure  5  opposite  "Note-books"  in  the  column  desig- 
nated "Simple."  Continue  in  the  same  way  with  the  other  four  tests, 
crediting  each  a  5,  a  3,  or  whatever  your  selections  really  deserve; 
and  then  do  likewise  with  the  other  three  classes.  A  perfect  score 
equals  100  points. 

How  many  credits  have  you? 

Should  this  grade  not  satisfy  you,  remember  that  it  is  subject  to 
improvement  at  any  and  all  times.  In  the  school  of  efficiency  the 
final  marks  are  never  entered  once  for  all  upon  the  books. 

A  Final  Warning! 

A  fad  is  a  good  idea  pressed  too  far.  The  recording  and  filing 
systems  described  above  may  become  merely  fads  in  the  hand  of  a 
zealot  who,  without  discrimination,  makes  a  note  of  everything  which 
falls  under  his  observation  and  religiously  files  it  away.  One  must 
keep  perspective,  and  not  forget  the  waste-basket. 

The  things  most  worth  filing  concern  themselves  with  standards. 

Last  year  as  a  result  of  several  months'  experimenting  in  your 
machine  shop,  you  standardized  the  making  of  brass  valves.  Are 
these  standards  now  your  permanent  possession,  recorded  and  filed? 

In  your  office  for  six  weeks  this  spring  a  high-priced  systematizer 
was  replacing  rule-of-thumb  with  standard  practice.  Do  you  have 
this  standard  practice,  or  has  most  of  it  disappeared  with  the  expert  ? 

Do  you  work  out  with  toil  and  patience  a  practical  method  of  get- 
ting more  from  your  time  and  effort,  the  one  best  way  to  hire  a 
stenographer,  equip  your  summer  camp,  mix  dye  stuff,  or  write 
letters? 

Record  it  and  file  it! 


CHAPTER  IV 

OFFICE  EQUIPMENT 

The  whole  aim  in  standardising  conditions  is  to  arrange 
means  to  eliminate  duplication  of  effort — to  make  things 
easier — to  kill  off  waste — to  facilitate,  in  every  possible  way. 
C.  E.  Knoeppel   Industrial  Engineer. 

The  Executive's  Workshop 

The  preceding  chapter  was  concerned  with  certain  me- 
chanical aids  which  have  proved  useful  in  the  handling  of 
details.  The  present  chapter  carries  the  matter  of  personal 
system  a  step  further. 

The  office  of  an  executive  should  be  a  well-arranged  work- 
shop, where,  with  minimum  time  and  effort,  a  maximum  men- 
tal output  is  attained.  While  it  is  true  that  this  output,  owing 
to  its  intangible  nature,  cannot  be  ticketed  in  the  storage  bins, 
it  is  none  the  less  real.  Its  cost,  like  that  of  foundry  castings 
or  machine  parts,  varies  according  to  the  completeness  with 
which  the  conditions  incident  to  its  production  have  been 
standardized. 

The  recognition  of  this  fact  more  or  less  clearly  has  been 
responsible  for  the  marked  changes  in  the  various  types  of 
office  equipment  which  have  taken  place  during  the  last  decade. 
The  executives  of  the  present  day  are  introducing  scientific 
management  into  their  personal  affairs,  and  surrounding  them- 
selves with  result-getting  equipment  which  was  unknown 
twenty  years  ago. 

Let  us  commence  with  the  leading  article  of  equipment  in 
an  office,  its  desk. 

43 


44 


THE  BASIS   OF  PERSONAL  SYSTEM 


The  Office  Desk 

Several  decades  ago,  as  Harry  A.  Hoff  tells  us,  it  was  the 
fashion  to  have  an  office  desk  of  walnut  or  bird's-eye  maple 
that  stood  five  feet  high,  opened  up  like  a  safe,  and  had  neat 
little  boxes  fitted  in  tiers  of  pigeonholes,  not  only  in  the  desk 
itself  but  in  either  door.  Filing  cabinets  were  unknown  and 
the  worker  at  the  desk  had  to  keep  within  his  immediate  reach 
all  the  numerous  letters,  papers,  and  records  relating  to  his 
work. 

After  the  invention  of  filing  cabinets,  the  roll-top  desk 
came  into  vogue.  It  was  an  improvement  on  its  archaic  prede- 
cessor, but  even  the  roll-top  desk  was  an  unwieldy  piece  of 
furniture  which  afforded  too  many  opportunities  for  the  stor- 
age of  papers  and  records  in  its  cavernous  drawers. 

Later  came  smaller  desks  with  superstructures  low  enough 
to  permit  a  clear  view  of  other  desks  in  the  office.  In  the 
meantime  as  filing  cabinets  were  perfected,  less  need  existed 
for  utilizing  the  desk  as  a  storage  cabinet.  This  consideration 
led  finally  to  the  modern  flat-top  desk,  a  type  which  is  widely 
used  in  the  business  world  today. 

The  "Built-to-Order"  Desk 

The  desk  is  now  regarded  very  properly  as  a  business 
work-bench.  Two  different  tendencies  may  be  noticed  as 
follows : 

First,  there  is  the  wish  to  utilize  every  possibility  of  the 
desk,  every  inch  of  its  top,  every  corner  of  its  drawers,  for 
quick,  first-aid  reference.  To  secure  such  complete  adapta- 
tion of  desk  to  user  it  is  often  desirable  to  have  the  desk  built 
to  order.  This  does  not  necessarily  imply  blue-printed  speci- 
fications for  some  skilled  cabinetmaker.  Various  filing  equip- 
ment manufacturers  have  saved  us  from  such  necessity  by  de- 
signing "desk  units."  (See  Figure  6.)  With  dozens  of  com- 
binations available — in  fact,  one  company  professes  to  offer 


OFFICE  EQUIPMENT  45 

8,000  possible  combinations — the  desk-worker  selects  the  units 
which  most  fully  satisfy  his  requirements,  in  this  way  build- 
ing his  own  serviceable  work-bench. 


Figure  6.    A  Desk  Built  to  Order 

This    represents    one    of    many    possible    combinations,    units    being    available    for    a 

variety   of  purposes. 

The  Desk  Cleared  for  Action 

The  second  tendency  is  the  wish  to  have  the  desk  clear, 
free  from  any  accumulation  or  litter.  To  clear  out  the  rubbish 
and  start  afresh  with  a  clean  desk  constitutes  a  first  step 
toward  office  system. 

Our  favorite  adjective  for  expressing  neatness,  complete- 
ness, and  efficiency  generally  is  "shipshape."  On  a  ship  every- 
thing must  be  stowed  away  in  its  place  because  the  space  is 
limited — there  is  just  room  enough.  When  Rear-Admiral 
McGowan,  "the  business  manager"  of  our  navy,  was  trans- 
ferred from  a  battleship  to  the  office  in  Washington,  he  applied 
the  same  principles  of  practical  efficiency  he  had  known  on 
shipboard. 

"Why  not,"  thought  McGowan,  "have  an  office  as  ship- 
shape as  a  ship?     If  there  is  wisdom  in  having  a  warship 


46  THE  BASIS   OF  PERSONAL   SYSTEM 

Stripped  for  action,  why  not  a  business  office?  Why  not  be 
just  as  efficient,  just  as  free  from  lost  motion,  on  land  as  on 
water  ? 

**Roll-top  desks  and  pigeonholes  are  the  foes  of  the  do-it- 
now  impulse,"  said  McGowan.  When  he  became  paymaster- 
general  the  offices  were  full  of  roll-top  desks  and  he  made  a 
request  for  a  new  equipment  of  desks.  When  it  was  refused 
he  sent  for  a  carpenter  and  had  him  saw  off  the  tops  and 
pigeonholes.  The  result — well,  that  may  be  described  in  the 
words  of  the  private  secretary  of  Judge  Gary  of  the  United 
States  Steel  Corporation,  who  has  the  same  idea : 

"That  table,"  said  Judge  Gary's  secretary,  "reflects  the 
state  of  mind  of  my  chief  as  he  begins  his  day's  work — cleared 
for  action."  Its  polished  top  bore  pen,  ink,  and  scratch  pad, 
nothing  more. 

The  Desk  Kept  Cleared  for  Action 

Now  that  the  desk  itself  has  been  rid  of  every  junk-heap 
characteristic,  the  time  is  at  hand  to  install  a  system  under 
which  accumulations  will  not  accumulate.  Material  will 
come — receive  the  proper  attention — then  go!  This  system 
will  increase  the  day's  output  and  prove  conducive  to  better 
sleep  at  night. 

"One  at  a  Time,  Gentlemen!" 

A  litter  of  papers  tends  to  create  confusion,  since  atten- 
tion is  divided  among  a  number  of  problems,  at  the  expense  of 
all.  Each  paper  in  sight  is  a  problem  awaiting  solution  and 
it  automatically  prods  the  mind  to  solve  it.  But  since  the 
attention  can  be  focused  effectively  upon  only  one  thing  at 
a  time,  every  paper,  every  task  to  be  done,  should  be  dealt 
with  as  callers  are  dealt  with — one  at  a  time  and  each  in  his 
turn.     This   requires   system,    which   in   this   particular   in- 


OFFICE  EQUIPMENT  47 


Figure  7.    The  Day's  Work  File 

Stance  is  well  represented  by  the  day's  work  file.     (See  Fig- 
ure 7.) 

The  Day's  Work  File 

The  form  of  the  day's  work  file  requires  no  special  con- 
sideration, but  its  function  is  vital  in  desk  efficiency.  A  place 
is  provided  for  every  paper,  where  it  cannot  distract  the  atten- 
tion from  other  work  nor  fall  under  the  gaze  of  curious  eyes, 
yet  where  it  is  instantly  accessible  when  wanted. 

Each  problem  in  hand,  every  piece  of  work  requiring 
time  should  be  assigned  a  place  in  the  day's  work  file  and  be 
put  there  to  await  its  turn.  Practically  an  appointment  is 
made  with  each  task.  In  this  way  a  simple  yet  effective  sys- 
tem may  be  evolved  from  the  day's  work  file  by  anyone  who 
is  willing  to  make  the  preliminary  survey. 

The  basis  of  any  system  is  analysis  and  classification.  In 
planning  for  a  day's  work  file,  the  executive  must  analyze 
his  day's  work.  What  sort  of  items  day  after  day  come  to 
him  for  attention  ?  In  what  classes  can  they  be  grouped  con- 
veniently? The  answers  to  the  latter  question  will  serve  as 
labels  for  the  pockets  of  the  file. 


48  THE  BASIS  OF  PERSONAL  SYSTEM 

A  General  Manager  Analyzes  His  Work 

The  following  classification,  worked  out  by  a  general 
manager,  may  prove  suggestive  and  adaptable  to  individual 
needs. 

Dictate  Today.  In  this  pocket  he  places  every  letter  which 
is  ready  for  dictation  and  which  should  be  sent  off  promptly. 

Dictate  When  Convenient.  In  this  pocket  he  slips  all  let- 
ters which  can  wait.  When  there  is  a  canceled  appointment  or 
some  delay,  he  reaches  into  this  folder  and  dictates  possibly 
a  half-dozen  letters  meanwhile. 

Mr.  Sheldon.  Mr.  Sheldon  is  the  sales  manager,  so  into 
this  pocket  go  items  pertaining  to  the  selling  department, 
including  advertising. 

Mr.  Reece.  This  pocket  is  set  aside  for  the  works  man- 
ager, and  it  receives  things  pertaining  to  the  production  end 
of  the  business. 

Mr.  Amster.  This  pocket  is  reserved  for  the  office  man- 
ager. Mr.  Sheldon,  Mr.  Reece,  and  Mr.  Amster  have  appoint- 
ments with  the  general  manager  every  morning,  and  each  of 
them  keeps  a  similar  file  in  preparing  for  his  appointment, 

Mr.  Olin.  Mr.  Olin  is  the  systematizer.  The  general 
manager  arranges  special  appointments  with  him  from  time 
to  time,  filing  meanwhile  in  this  pocket  items  which  are  to 
come  up  at  the  next  conference. 

Directors.  The  directors  meet  once  a  month  on  the  first 
Monday.  This  date  is  entered  in  the  tickler  two  business 
days  beforehand,  which  allows  the  general  manager  ample 
time  to  get  the  material  here  filed  into  shape  for  the  meeting. 

Kick  Meeting.  The  junior  ofiicials  of  the  firm  are  in  the 
habit  of  meeting  the  general  manager  every  other  week  on 
Wednesdays,  at  conferences  to  which  the  name  *'kick  meet- 
ing" has  been  facetiously  applied.  As  the  meetings  are  really 
constructive,  this  pocket  receives  various  items  other  than 
objections. 


OFFICE  EQUIPMENT 


49 


Pending.  Matters  temporarily  held  up  are  filed  here. 
Sometimes  it  is  a  quotation  which  is  awaited,  sometimes  the 
reply  to  a  house  communication  or  a  letter. 

Specials.  The  additional  pockets  are  reserved  for  what- 
ever miscellaneous  matters  may  come  up.  Perhaps  it  is  an 
after-dinner  address,  or  the  annual  business  show,  or  a  mutual 


Figure  8.    An  Extension  of  the  Day's  Work  File 


benefit  association  organized  among  his  workmen ;  in  any  case 
his  secretary  types  a  new  label  and  pastes  it  upon  some  unused 
flap.  When  the  matter  has  been  disposed  of,  the  pocket  be- 
comes available  for  a  new  label. 

The  foregoing  headings  prove  adequate  for  this  general 
manager  and  his  position  is  important  enough  to  draw  a  sal- 
ary running  well  into  five  figures.     The  point  to  be  noted. 


50  THE   BASIS   OF   PERSONAL   SYSTEM 

however,  is  the  fact  that  the  day's  work  when  analyzed  can 
be  classified. 

Some  men  may  prefer  a  more  complete  classification,  with 
such  a  corresponding  increase  in  pockets  that  a  single  file 
cannot  well  contain  them  all.  In  this  case,  a  second  file  can 
be  planned  as  a  continuation  of  the  first  and  kept  in  a  lower 
drawer  of  the  desk,     (See  Figure  8.) 

A  Hold-Over  File 

If  the  list  of  items  held  up  for  attention  becomes  too 
bulky  for  the  day's  work  file,  some  sort  of  hold-over  must  be 
devised.  If  you  have  the  well-arranged  vertical  letter-file 
described  in  Chapter  III,  the  problem  takes  care  of  itself ;  but 
if  that  is  not  available,  there  are  substitutes. 

The  expansion  envelope,  large-sized  and  made  of  tough 
stock,  is  one  substitute.  Expansion  envelopes  in  certain  pat- 
terns have  a  complete  index,  pockets  being  provided  for  each 
letter  of  the  alphabet,  day  of  the  month,  month  of  the 
year,  etc. 

The  Deep  Drawer  Remodeled  into  a  File 

A  better  solution  consists  in  remodeling  that  big,  deep 
drawer  found  in  most  desks.  At  present  it  is  likely  to  be  sys- 
tem's arch-enemy — filled  with  business  relics  of  every  sort — 
but  by  removing  the  two  wooden  partitions  and  fitting  it  out 
with  folders,  it  can  be  made  over  into  a  handy  vertical  file. 

This  drawer  file  can  be  indexed,  of  course,  in  whatever 
way  one  sees  fit.  With  the  various  subjects  in  which  we  are 
interested  written  on  the  tabs,  it  serves  as  an  idea  file.  In- 
dexed according  to  days  and  months,  it  becomes  a  follow-up. 
Fitted  with  twenty-six  folders  alphabetized,  it  makes  a  good 
letter-file.  Labeled  with  the  subjects  upon  which  we  work 
daily,  it  supplements  the  day's  work  file. 


OFFICE  EQUIPMENT  5I 

Results  of  Good  Equipment  and  Layout 

With  these  appliances,  simple  though  they  are,  as  his  aids, 
a  man  is  able  to  hold  the  whip-hand  over  his  work.  He  no 
longer  goes  through  batches  of  papers  in  the  old  haphazard 
manner,  but  attacks  them  methodically.  The  various  tasks  on 
hand  are  there  in  the  day's  work  file,  each  in  its  own  compart- 
ment, some  of  them  accumulating  gradually  the  supplement- 
ary information  required  for  their  solution.  The  thing  to  do 
is  thus  made  definite,  specific.  As  each  task  is  taken  up  it 
receives  undivided  attention. 

The  Disposal  of  Finished  Work 

Finished  and  unfinished  work  should  not  be  allowed  to 
intermix.  If  the  finished  work  is  left  lying  about  one  is 
tempted  to  putter  at  it,  thereby  losing  that  stimulus  to  the  will 
which  comes  from  dispatching  a  thing  with  finality. 

A  system  for  outgoing  material  must  be  devised.  Where 
the  messenger  service  is  good,  one  basket  or  tray  may  suffice ; 
each  piece  of  matter  dropped  into  the  basket  has  its  destina- 
tion indicated  on  a  sheet  attached  and  the  office  boy  does  the 
rest.  In  other  cases,  a  series  of  compartments  perhaps  will 
be  arranged,  each  labeled  'Tor  Mr.  Morris,"  "For  Mr. 
Jones,"  "Outgoing  Mail,"  etc.  Sometimes  wire  baskets,  the 
three-decker  sort,  are  used  for  this  purpose. 

The  Matter  of  Small  Wastes 

Many  executives,  anxious  to  get  directly  at  their  tasks, 
pay  slight  attention  to  their  desk  tools.  In  many  private 
offices  high-salaried  men  are  tearing  open  letters  with  their 
fingers,  sharpening  pencils  with  a  jack  knife,  writing  with  old, 
scratchy,  steel  pens — their  desks  littered  with  miscellaneous 
supplies,  and  paraphernalia  in  the  main  unused  because  un- 
usable. 


52 


THE  BASIS  OF  PERSONAL  SYSTEM 


Take  a  lesson  from  the  machine  shop.  Standardize  the 
working  tools. 

What  articles  do  I  find  absolutely  essential?  A  rigorous 
answer  to  this  question  insures  the  worker  his  full  kit  of  tools, 
but  rids  him  of  a  number  of  articles  which  now  clutter  his 
desk  drawers  and  desk  top. 

What  size  and  quality  of  these  articles  are  best?  Do  not 
leave  to  chance  the  kind  of  letter  paper  or  ink  or  pencils  that 


Miscellaneous 


Ruler  and  Scissors 


Extra 


Rubber 
Bands 


Tins 


Clips 


Stamps 


(Front  of  Drawer.) 

Figure  9.    The  Center  Desk  Drawer  Partitioned 

When   compartments  have  been   installed,  the  contents  are  not  thrown   into  confusion 

with  every  opening  and  shutting  of  this  drawer,  and  the  reaching  for  articles  needed 

becomes  a  matter  of  second  nature. 


you  use,  or  keep  changing  the  size  of  your  memo  paper.  Their 
proper  selection  in  the  first  place,  by  which  is  meant  their 
standardization,  solves  the  matter. 


OFFICE  EQUIPMENT  53 

A  Place  for  Each  Desk  Tool 

Where  shall  these  articles  be  kept?  "A  place  for  every- 
thing and  everything  in  its  place,"  the  old  motto  taught  us 
by  our  grandmothers,  applies  forcibly  here  for  this  reason : 
Not  only  can  tools  be  secured  more  conveniently  if  stored 
according  to  some  definite  plan  but,  when  they  are  kept  regu- 
larly in  their  respective  places,  the  process  of  reaching  them 
when  desired  is  rendered  automatic.  This  results  in  a  decided 
saving  of  the  mental  forces  and  business  time  of  the  execu- 
tive. 

The  wide,  shallow  middle  drawer  affords  a  convenient 
location  for  the  majority  of  desk  tools.  Special  compart- 
ments in  this  drawer  should  be  arranged  for  the  things  most 
frequently  used,  the  partitions  being  made  either  of  wood  or 
cardboard.  (See  Figure  9.)  It  is  also  possible  to  secure 
from  office  supply  houses  a  separate  wooden  tray,  with  nu- 
merous cups  hollowed  out  like  a  money  till,  which  slips  into 
the  shallow  drawer.  Until  the  location  assigned  to  the  various 
tools  becomes  second  nature,  it  is  well  to  label  each  com- 
partment. 

The  Glass  Desk  Top  as  an  Extra  File 

The  filing  system  puts  papers  out  of  sight,  where  they  will 
not  distract  the  attention  from  the  work  at  hand.  Certain 
data,  however,  are  so  frequently  consulted  that  they  ought,  if 
possible,  to  be  kept  in  full  view.  The  glass  desk  top  affords 
a  solution. 

Or  a  small  glass  plate  can  be  inserted  in  the  arm  rest  of  a 
chair,  or  the  slide  on  a  desk,  and  thus  a  place,  perhaps  even 
more  convenient  than  the  glass  desk  top  and  possessing  some 
privacy,  may  be  arranged  for  price  schedules,  cost  figures, 
today's  plans,  or  other  data  to  which  frequent  reference  is 
made. 


54 


THE  BASIS  OF  PERSONAL  SYSTEM 


An  Architect's  Office  System 

An  architect  uses  the  large  sheet  kept  under  this  glass  top 
as  the  basis  of  his  entire  system.  Each  job  as  undertaken  is 
entered  in  order  on  the  schedule*  sheet,  receiving  automatically 
as  its  number  the  number  of  the  line  it  occupies  thereon.  (See 
Figure  lo.)  This  number  then  becomes  the  key  to  every- 
thing pertaining  to  the  particular  job.  Sketches  and  draw- 
ings, specifications,  records  of  every  kind  are  filed  by  this 
number,  filling  as  many  folders  as  may  be  needed,  3-1,  3-2, 
3-3,  etc.  The  schedule  sheet  as  used  in  this  office  deserves 
its  prominent  place  under  the  glass  desk  top. 


Figure  10.    Schedule  for  Desk  Glass 

This    is    the    schedule    sheet    on    which    an    architect    keeps    track    of    jobs    ahead. 
(Reproduced  through  courtesy  of  System.) 

No  doubt  in  every  office  certain  material  can  be  filed  with 
profit  under  the  glass  top — ^production  graphs  for  works 
managers,  season  schedules  for  sporting  page  editors,  tables 
of  stocks  on  hand  for  merchandise  men,  and  fundamental 
statistics  for  purchasing  agents.  But  this  space  is  too  limited 
and  too  prominent  a  flag  to  the  attention  to  permit  its  indis- 
criminate assignment. 


OFFICE  EQUIPMENT  55 

The  Executive's  Devices  for  Communication 

The  executive  requires  some  appropriate  system  for  com- 
munication, and  his  desk  to  serve  him  well  must  bring  this 
system  close  at  hand. 

Five  devices  are  worth  mentioning  in  this  connection: 
the  buzzer,  the  telephone,  the  interphone  or  house  phone,  the 
dictograph,  and  the  telautograph.  The  simplest  to  install  is 
the  buzzer;  practically  all  electrical  supply  houses  carry  it 
and  any  person  who  understands  the  most  simple  electric 
wiring  can  install  it.  The  location  of  the  button  should  be 
within  easy  reach.  If  it  is  desired  a  signal  code  can  be 
adopted. 

The  Telephone,  Its  Use  and  Abuse 

The  telephone  is  widely  used — and  abused  too,  although 
the  quality  of  telephone  habits  is  steadily  rising.  In  managing 
calls  in  the  private  office,  there  still  exists  room  for  improve- 
ment; too  much  time  is  lost  in  the  maneuvers  of  secretaries 
who  try  to  get  the  outside  executive  on  the  wire  before  their 
own  employers  are  called. 

The  telephone  proves  so  convenient  a  means  of  communi- 
cation for  house  men  that  after  a  time  its  use  for  outside  busi- 
ness is  seriously  interfered  with.  The  interphone  overcomes 
this  difficulty  since  it  is  independent  of  the  public  telephone 
system.  There  are  several  types  of  these  interphones  on  the 
market;  with  practically  all  of  these  the  necessary  connec- 
tions may  be  made  without  requiring  the  services  of  an 
operator. 

Dictograph  and  Telautograph 

The  dictograph  affords  some  distinct  advantages  in  bring- 
ing business  men  into  communication.  Through  its  use  an 
executive  located  at  a  central  station  may  call  several  depart- 
ment heads  into  a  conference  over  the  wire. 


56  THE  BASIS   OF  PERSONAL  SYSTEM 

The  telautograph  is  a  mechanical  device  by  means  of 
which  a  message  written  on  one  instrument  is  duplicated  upon 
the  receiving  board  of  a  second  instrument  located  elsewhere 
within  the  organization  but  connected  with  the  first  instrument 
by  electricity.  Since  the  messages  are  recorded  at  both  ends 
of  the  line,  it  furnishes  a  check  upon  the  accuracy  of  inter- 
communications. 

Still  other  means  of  communication  are  the  pneumatic 
tubes,  the  overhead  carrier,  and  the  dumb-waiter.  Informa- 
tion concerning  all  these  devices  may  be  secured  from  their 
respective  manufacturers  whose  advertisements  appear  in 
office  equipment  journals.  It  may  be  well  in  passing  to  em- 
phasize the  value  of  a  well-planned  office  memo  blank  and  a 
smoothly  working  messenger  service. 

The  Importance  of  Office  Layout 

It  may  seem  now  that  the  business  man  has  his  private 
office  fully  equipped.  This  is  not  yet  true,  for  all  equipment 
is  merely  a  means  to  an  end — does  it  get  results  easily  and 
quickly  ? 

Much  depends  upon  the  way  the  equipment  has  been 
arranged  within  the  office.  Are  the  filing  cabinets  over  near 
the  door,  requiring  several  steps  to  reach  them?  Does  the 
telephone  placed  by  the  window  necessitate  more  walking? 
Does  one  in  consulting  the  dictionary  or  the  trade  catalogue 
step  around  the  desk?  Is  the  most  frequently  used  desk  tool 
kept  at  the  rear,  not  the  front,  of  the  middle  desk  drawer? 

A  Real  Estate  Dealer's  Office  Problem 

This  problem  was  met  and. solved  ingeniously  by  a  real 
estate  dealer.  This  dealer's  office  was  conveniently  connected 
with  that  of  an  insurance  company  with  which  he  co-operated, 
and  which  permitted  him  at  slight  expense  to  make  use  of  its 
reception  room  for  his  callers.    He  had  one  assistant,  a  young 


OFFICE  EQUIPMENT  57 

man  just  out  of  high  school,  who  handled  the  stenographic 
and  clerical  work  besides  interesting  himself  in  the  business. 
The  office  layout  as  it  then  existed  is  shown  in  Figure  11  a. 

The  business  fell  into  two  distinct  divisions :  ( i )  the  man- 
aging of  buildings  for  their  owners,  the  list  of  properties 
being  kept  in  a  4  x  6  unit  and  all  correspondence  and  other 
records  in  vertical  letter  file  units  of  the  same  filing  cabinet; 
and  (2)  personal  ventures,  the  data  for  which  consisted  of 
papers  kept  in  the  pigeonholes  and  drawers  of  his  desk  or 
piled  on  the  table,  and  of  maps  which  when  rolled  stood  in 
the  comer  but  otherwise  were  lying  on  the  table. 

In  these  personal  ventures,  the  dealer  would  usually  buy 
a  plot,  subdivide  it,  sell  the  lots  at  a  profitable  advance,  and 
perhaps  build  houses  on  them  according  to  the  purchaser's 
specifications.  Unless  the  specifications  were  intricate,  the 
dealer  served  as  his  own  architect,  working  out  the  plans 
while  seated  at  the  table. 

The  real  estate  man  received  notice,  however,  that  since 
the  manufacturer,  his  other  neighbor,  must  have  more  space, 
his  present  office  upon  the  expiration  of  the  year's  lease  would 
be  cut  down  in  width  by  eight  feet.  He  was  about  to  move, 
when  he  was  persuaded  to  study  his  office  layout  problem. 

What  an  Investigation  Revealed 

Investigation  revealed  that  during  two  two-hour  periods 
selected  for  study  he  turned  to  his  bookcase  zero  times;  he 
consulted  his  filing  cabinets  five  times,  in  each  instance  the 
4x6  card  index  unit ;  he  walked  to  the  table  and  back  eight- 
een times,  several  of  these  trips  being  for  tools  needed  at  the 
table  but  kept  at  the  desk.  He  made  four  trips  to  the  maps, 
plus  a  few  others  from  file  to  maps  or  from  maps  to  table  or 
from  desk,  etc.,  to  door.  In  two  instances  he  averaged  five 
minutes  in  hunting  through  a  pile  of  house  pictures  for  a 
certain  set  he  wanted  to  show  his  visitor.    In  one  instance  he 


58 


THE  BASIS   OF  PERSONAL   SYSTEM 


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OFFICE  EQUIPMENT  59 

took  a  drawer  full  of  papers  out  upon  his  lap  and  spent  eleven 
minutes  hunting  before  he  was  ready  to  dictate.  In  four 
instances  he  thumbed  somewhat  thoughtlessly  material  pro- 
truding from  the  pigeonholes  but  did  not  carry  the  search 
further.  The  assistant  during  the  same  hours  walked  to  the 
table  three  times,  to  confer  with  his  chief ;  to  the  files  six 
times,  usually  with  reference  to  correspondence;  and  to  take 
dictation,  three  times. 

The  Office  as  Rearranged 

When  these  various  trips  had  been  plotted  on  a  diagram 
and  this  compared  with  a  second  diagram  showing  how  the 
office  could  be  arranged,  the  real  estate  man  was  speedily  con- 
vinced of  the  value  of  motion  study  and  its  importance  to 
him.  The  new  office,  as  rearranged  after  the  partition  was 
moved  over  eight  feet,  is  shown  in  Figure  lib. 

The  table  was  moved  into  the  corner  near  the  desk,  the 
bookcase  was  taken  out  and  a  small  rack,  sufficient  to  hold 
all  the  volumes,  substituted.  The  filing  cabinet  was  brought 
near  the  assistant,  but  the  4x6  card  index  so  frequently  con- 
sulted by  the  dealer  was  installed  as  a  desk  unit.  The  maps 
were  taken  from  the  corner  and  fitted  into  one  of  the  regula- 
tion wall  cabinets;  any  of  them  can  now  be  pulled  down  at 
will  and  when  not  in  use  it  is  rolled  up  out  of  the  way.  The 
pictures  once  piled  on  a  low  box  under  the  table  now  are 
attractively  mounted  on  large  display  leaves,  hinged  so  as  to 
swing  back  against  the  wall.  The  architect's  papers  and 
drawings  formerly  kept  on  top  of  the  table  have  been  placed 
inside  the  large  shallow  drawer  which  a  carpenter  fitted  into 
this  table.  A  double  desk  replaces  the  old  roll  top  affair,  the 
typewriter  desk  has  been  turned  half-way  about  and  both 
workers  use  swivel  chairs. 

"My  rent  has  been  cut  down  $350,"  comments  the  real 
estate  man,  "but  that  doesn't  begin  to  represent  what  I've 


6o  THE  BASIS   OF  PERSONAL  SYSTEM 

gained.  I  can  turn  in  my  chair  here  and  lay  my  hands  on 
about  everything  I  want.  This  deep  drawer,"  pulling  open 
the  lower  drawer  of  his  desk,  "has  every  lot  and  house  I've 
got  on  sale  filed  there  in  order.  This  makes  it  easy  to  follow 
things  up.  The  maps  and  pictures  over  there  help  me  to  get 
my  sales  talk  across.  And  as  for  being  crowded,  we  actually 
seem  to  have  more  room  than  ever." 

There  is  nothing  particularly  unusual  about  the  real  estate 
man's  problem,  nor  does  he  claim  in  his  present  office  arrange- 
ment to  have  reached  perfection.  He  simply  applied  the 
principles  of  motion  study  to  the  conditions  of  his  daily  work. 
This  everyone  may  do. 

Conclusion 

Standardization  of  office  conditions  by  facilitating  and 
expediting  necessary  operations  makes  increase  of  output 
possible.  The  business  man  who  takes  hold  of  the  matter 
systematically  can  transform  his  office,  whatever  his  line  of 
business,  into  an  efficiently  productive  workshop. 


Exercises 

Simple  Forms  of  the  Day's  Work  File 

In  considering  the  day's  work  file  possibly  you  may  have  been  led 
to  think  it  feasible  only  to  men,  like  the  general  manager  above  men- 
tioned, with  many  things  on  their  hands.  Such  would  be  an  incor- 
rect view.  The  day's  work  file  to  be  helpful  need  not  have  an  elabo- 
rate index. 

One  successful  business  man  depends  constantly  upon  a  file  whose 
index  has  only  eight  tabs  and  five  of  these  are  specials !  The  three 
regulars  are  "Today's,"  "When  convenient,"  and  "Pending,"  The 
other  tabs  are  labeled  from  time  to  time  as  special  problems  are 
undertaken. 

If  you  want  to  try  out  the  day's  work  file  before  purchasing,  take 
a  discarded  letter  file  of  the  old-fashioned  book  type,  remove  the  leaf 
covers  at  both  side  and  back,  substitute  for  the  alphabetized  paper 


OFFICE  EQUIPMENT  6l 

sheets  an  index  of  seven  or  eight  stiff  pressboard  sheets,  arranging 
these  in  such  a  way  that  the  tabs  will  not  overlap  so  as  to  hide  each 
other,  and  provide  yourself  with  a  few  plain  gummed  labels. 

An  analysis  of  your  work  is  next  to  be  made. 

What  sort  of  work  are  you  doing?  Can  you  classify  it  under 
some  such  heads  as  the  general  manager  did,  or  more  simply,  as  in 
the  case  just  cited?  These  headings  you  now  write  on  the  gummed 
labels,  sticking  them  upon  the  tabs  in  order.  If  the  file  does  not 
work  smoothly  the  chances  are  you  have  not  correctly  analyzed 
your  work,  although  this,  it  may  be  added,  need  cause  no  particular 
concern  since  the  classification  admits  of  modification  until  the  ar- 
rangement proved  most  practical  has  been  secured. 

An  Inventory  of  Your  Desk  Tools 

Suppose  we  now  take  an  inventory  of  the  desk  tools,  using  for  this 
purpose  Test  Chart  3.  Complete  the  list  of  articles  by  writing  in  the 
names  of  whatever  additional  items  the  search  through  your  desk 
reveals.  Indicate  by  check  marks  your  answers  in  the  next  three 
columns.  Consider  the  matter  with  some  care  before  checking  the 
replies  of  the  last  two  columns,  since  questions  such  as  the  following 
have  to  be  answered: 

When  reordering  supplies,  paper  for  instance,  do  you  depend  upon 
guesswork  or  upon  exact  information,  recorded? 

Are  you  found  wasting  ten  minutes'time  trying  to  tie  some  package 
with  a  piece  of  string  it  required  five  cents  of  your  time  to  save,  or 
using  for  scratch  paper  an  old  envelope  carefully  preserved  at  a  cost 
in  time  of  four  sheets  of  the  regulation  pad? 

Does  the  shallow  center  drawer  contain  all  the  small  tools  in  con- 
stant use,  or  do  these  occupy  various  locations  ?  Are  these  tools  kept 
in  the  most  convenient  order,  or  are  the  frequently  used  clips  well 
to  the  back  of  the  drawer,  with  the  rarely  used  sealing  wax  occupy- 
ing a  prominent  place  at  the  front?  Every  motion  ought  to  count; 
and  while  the  sealing  wax  no  doubt  is  handy  the  clips  ought  to  be 
more  handy. 

Other  Aids 

How  about  a  dictionary  and  some  reference  books?  In  a  certain 
publishing  house,  I  found  the  editorial  staff  without  a  dictionary ! 
The  business  man  unless  his  tastes  are  scholarly  need  not  invest  in 
Webster's  International,  The  Century,  or  The  New  Standard,  but 
at  any  rate  some  abridged  edition  of  these  deserves  a  place  in  his 
office. 

Each  business  also  has  its  own  special  reference  works,  some  of 
which  at  least  ought  to  be  accessible. 


62 


THE  BASIS   OF   PERSONAL  SYSTEM 


Articles 


Pencils 

Pens 

Ink 

Blotters 

Ruler 

Erasers 

Clips 

Pins 

Rubber  bands 

Twine 

Letter  opener 

Scissors 

Paper-weight 

Colored  pencils 

Pencil  sharpener 

Penknife 

Screw-driver 

Library  paste 

Drawing  instruments 

Sealing-wax 

Stationery 

Sponge 

Scratch-paper 

Memo  paper 

Cross-ruled  paper 

Paper-punch 


These  I 
Have 


These  I 
Require 


These 
are 

Stand- 
ardized 

Size, 
Quality, 
Loca- 
tion 


1 


Test  Chart  3.    An  Inventory  of  Desk  Tools 

A  dictionary  holder  adjusted  to  the  corner  of  the  desk  keeps  the 
book  ready  for  consultation  and  a  revolving  bookcase  near  the  desk 
makes  it  easy  to  get  at  a  number  of  books.  However,  much  depends 
here  upon  special  needs.  Lack  of  space  usually  prevents  our  having 
within  reach  everything  we  might  need,  so  we  must  give  first  plact 


OFFICE  EQUIPMENT  63 

to  those  we  use  most.  To  the  business  man  this'  means  as  a  usual 
thing  that  the  revolving  bookcase  must  give  way  to  an  extra  chair 
for  callers. 

Lost  Motion  in  Your  Own  Office 

How  much  lost  motion  can  you  eliminate  from  your  office?  Pos- 
sibly you  say  none  at  all,  that  everything  runs  smoothly  as  a  clock. 
That  was  the  way  the  real  estate  dealer  felt  about  his  office,  until 
he  found  out. 

On  a  sheet  of  paper  draw  a  diagram  of  your  present  layout.  Use 
cross-ruled  paper  if  you  have  it  at  hand,  or  rule  a  sheet  lightly  with 
pencil  on  the  scale  of  one  or  two  feet  to  the  half-inch.  Block  in  with 
heavy  lines  the  various  pieces  of  furniture,  each  in  its  relative  loca- 
tion. Have  someone  record  your  chief  movements  about  the  office 
during  several  of  what  may  be  taken  as  sample  hours.  On  the 
diagram  represent  these  by  dotted  lines.  What  does  this  motion 
study  tell  you  about  yourself? 

When  this  question  has  had  its  answer,  take  a  second  sheet  of 
paper  ruled  like  the  first.  Block  in  with  heavy  lines  the  outside 
limits  of  your  office,  indicating  the  walls,  door,  and  windows.  On 
the  same  scale,  cut  out  small  paper  squares  to  represent  its  chief 
articles  of  furniture.  Now  maneuver  these  paper  squares  around 
like  pieces  on  a  chess-board,  until  the  best  possible  layout  is  discov- 
ered. An  ideal  solution  may  not  be  attainable,  the  lighting  in  one 
otherwise  perfect  plan  being  poor,  while  the  arrangement  which 
secures  100  per  cent  lighting  entails  two  extra  steps  in  getting  at 
the  files.  Under  careful  manipulation,  however,  such  difficulties  can 
be  minimized,  though  scarcely  avoided  in  their  entirety.  Standard- 
ized conditions  in  this  case  mean  simply  the  one  best  combination, 
not  the  ideal  location  for  every  unit  in  that  combination. 

Very  few  offices  are  able  to  score  100  per  cent  in  this  layout  test. 


CHAPTER  V 

THE  PRIVATE  SECRETARY 

It  is  hard  to  get  a  man  to  let  go  of  detail — to  grow  up  into 
control — to  think  for  subordinates  who  do  not  think. — 
Edward  B.  Butler,  President  of  Butler  Brothers. 

John  D.  Rockefeller's  Growth  as  an  Executive 

The  business  man  needs  not  merely  an  expanded  capacity 
for  handling  detail  personally  but,  as  he  advances,  the  sense 
of  proportion  as  to  the  relative  value  of  his  own  effort. 

The  career  of  John  D.  Rockefeller,  since  it  well  illustrates 
this  signijficant,  though  gradual  change  with  respect  to  details, 
merits  the  close  consideration  of  any  business  man  who,  hke 
Mr.  Rockefeller,  would  advance  to  high  position. 

The  refinery  in  which  he  first  began  the  oil  business  was 
a  small  affair.  The  pushing  of  the  business,  the  buying  and 
the  selling,  fell  to  Mr.  Rockefeller,  and  not  a  single  detail 
believed  to  affect  either  profit  or  loss  escaped  his  hawklike 
scrutiny.  **He  had  the  frugal  man's  hatred  of  waste  and 
disorder,  of  middleman  and  unnecessary  manipulation, '  Miss 
Tarbell  in  her  admirable  "History  of  the  Standard  Oil  Com- 
pany" points  out,  "and  he  began  a  vigorous  elimination  of 
these  from  his  business.  The  residuum  that  other  refineries 
let  run  into  the  ground  he  sold.  Old  iron  found  its  way  to 
the  junk  shop.  He  bought  his  oil  directly  from  the  wells. 
He  made  his  own  barrels.  He  watched  and  saved  and  con- 
trived." 

The  Standard  Oil  "Trust" 

The  business  under  such  watchful  management  expanded, 
and  here  c  gain  Mr.  Rockefeller  showed  his  business  acumen — 

64 


THE  PRIVATE  SECRETARY 


65 


he  expanded  with  it.  "The  entire  business  was  placed  in 
1882  in  the  hands  of  nine  trustees,  of  whom  Mr.  Rockefeller 
was  president.  These  trustees  have  always  acted  as  if  they 
were  nine  partners  in  a  business,  and  the  only  persons  con- 
cerned in  it.  .  .  .  Below  them,  and  sifting  things  for  their 
eyes,  were  committees  which  dealt  with  the  various  depart- 
ments of  the  business." 

It  has  always  been  a  tenet  of  Mr.  Rockefeller's  business 
faith  to  select  as  his  associates  the  "big"  men,  the  ones  who 
had  shown  that  they  could  succeed.  The  evolution  of  his 
vast  business  has  been  parallel  with  the  devolution  of  much 
responsibility  upon  subordinates.  Although  the  methods  of 
organization  changed  often,  this  rule  remained  a  law  of  the 
Medes  and  Persians,  unalterable  and  unanswerable. 

The  Headship  of  a  Big  Organization 

How  did  this  new  policy,  gradually  introduced  as  the 
business  expanded,  affect  Mr.  Rockefeller  personally?  Rocke- 
feller, himself,  explains  his  policy  as  follows: 

"My  methods  of  attending  to  business  matters  differed 
from  those  of  most  well-conducted  merchants  of  my  time," 
says  Mr.  Rockefeller,  in  his  "Random  Reminiscences,"  "and 
allowed  me  more  freedom.  Even  after  the  chief  affairs  of 
the  Standard  Oil  Company  were  moved  to  New  York,  I  spent 
most  of  my  summers  at  our  home  in  Cleveland,  and  I  do  still. 
I  would  come  to  New  York  when  rny  presence  seemed  neces- 
sary, but  for  the  most  part  I  kept  in  touch  with  the  business 
through  our  own  telegraph  wires,  and  was  left  free  to  attend 
to  many  things  which  interested  me — among  others,  the 
making  of  paths,  the  planting  of  trees,  and  the  setting  out 
of  little  forests  of  seedlings." 

At  first,  Mr.  Rockefeller  handled  details  by  attending  to 
them  personally;  afterwards  he  handled  details  by  delegating 
them. 


66  THE   BASIS   OF   PERSONAL   SYSTEM 

The  Executive's  Chief  Business 

If  men  are  to  advance,  they  must  learn  to  share  tasks, 
for  advancement  in  business  means  assuming  control  of  ac- 
tivities too  large  for  the  individual  to  swing  unaided.  The 
man  at  the  head  of  a  business,  or  at  the  head  of  a  department, 
becomes  necessarily  an  organizer.  He  learns  to  shift  the 
burden  of  detail  upon  subordinates  and  to  systematize  routine 
so  that  everyday  results  are  made  automatic. 

Organization  is  one  of  the  best  ways  to  discipline  de- 
tails. 

The  executive  in  his  desire  for  maximum  accomplishment 
is  thus  called  outside  his  private  office  to  study  his  organiza- 
tion as  a  whole.  If  his  desk  is  overcrowded,  if  he  finds  that 
in  spite  of  system  and  speeding  up,  the  day's  routine  leaves 
him  no  time  for  constructive  effort,  his  organization  is  im- 
perfect. (See  Figure  12a.)  The  same  personnel,  when  dif- 
ferently organized,  he  may  handle  with  effectiveness — and 
find  a  little  time  perhaps  in  consequence,  to  cultivate  an  ac- 
quaintance with  his  golf  club.  (See  Figure  12b.)  This  is 
quite  as  it  should  be. 

'*The  executive's  chief  business,"  says  President  Ripley 
of  the  Santa  Fe,  "is  to  organize,  deputize,  and  supervise." 

The  Utilization  of  Assistants 

Of  special  importance  among  the  subordinates  who  free 
the  executive  from  detail  is  the  private  secretary.  His  posi- 
tion is  comparatively  new,  an  outgrowth  of  large-scale  busi- 
ness. Executives  found  after  a  time  that  a  variety  of  minor 
matters  could  be  delegated  to  confidential  and  properly  quali- 
fied assistants.  So  excellent  upon  the  whole  have  been  the 
results  attained  that  it  is  very  common  among  progressive 
concerns  to  find  private  secretaries  whose  day's  activities  are 
approximately  as  follows : 


THE  PRIVATE  SECRETARY 


67 


■\.^ 


'— 1 

r— 1 

« 

»4 

i? 

1 1 

'— ' 

r  ' 

_r  ' 

1 1 

•i> 

s; 

^ 

1 r 

1 — 1 

__ 

1 1 

|— 

> 

r- 

^ 

p- 

!? 

= 

J 

— ' 

' — ' 

■ 

' — ' 

L 

fj 

1— 

Ol 

1— 

5 

Mi 

•s 

' — ' 

1 1 

1 — 1 

1 — 1 

•n 

N 

5 

l__l 

1 1 

fe 


'^  c  ? 

O  o  s 

■n 


68  THE  BASIS   OF  PERSONAL   SYSTEM 

The  Duties  of  a  Private  Secretary 

The  secretary  finds  awaiting  him  upon  his  arrival  all 
mail  for  the  executive  office.  This  he  opens  and  sorts,  redi- 
recting part  of  it  to  other  departments,  filing  away  tempo- 
rarily such  letters  as  require  the  securing  of  information  before 
reply,  answering  all  the  minor  communications,  and  placing 
upon  the  chief's  desk  those  he  deems  sufficiently  important 
or  personal.  Even  with  the  latter  he  assists  by  preparing 
digests  of  their  contents  or  securing  from  the  files  the  record 
of  whatever  previous  correspondence  may  be  needed.  The 
reply  itself  he  very  commonly  writes  out  in  full  from  the 
briefest  directions  given  by  his  employer.  This  method  of 
handling  correspondence,  the  executive  learns,  is  a  great  time- 
saver. 

Often  the  secretary  prepares  the  materials  for  a  banquet 
address  or  the  annual  report  of  the  corporation;  sometimes 
he  even  writes  the  address  or  report  in  full.  He  does  the 
editing  and  proof-reading  for  sundry  articles;  or  works  up 
from  such  sources  of  information  as  trade  papers,  govern- 
ment reports,  current  magazines,  or  reference  books  in  the 
hbrary  the  answers  to  all  sorts  of  questions.  The  average 
executive  has  reason  to  appreciate  a  secretary  who  is  able 
to  do  such  literary  and  research  work,  since  otherwise  much 
of  it  would  be  left  undone. 

The  secretary  meets  the  callers,  ushers  in  some  of  them 
to  his  chief's  presence  without  delay,  wards  off  tactfully  those 
who  are  unwelcome,  refers  others  to  the  proper  departments, 
attends  to  many  inquiries  himself,  and  makes  appointments 
for  others  with  his  chief. 

The  secretary  takes  care  of  telephone  calls,  records  ap- 
pointments and  sees  that  they  are  kept,  installs  and  keeps  in 
condition  the  proper  filing  systems,  follows  up  orders,  and  maps 
out  the  day's  work.  The  secretary  of  a  well-known  insurance 
president  remarked,  "There  is  practically  no  business  of  Mr. 
McCall's  that  does  not  pass  through  my  hands." 


THE  PRIVATE  SECRETARY  69 

The  Money  Value  of  Secretarial  Services 

The  modern  executive  recognizes  such  services  as  indis- 
pensable. It  is  said  that  Vice-President  Tarbell  of  the  Equi- 
table pays  his  secretary  a  salary  of  $12,000  per  year,  and  that 
the  late  H.  H.  Rogers  valued  his  secretary's  services  at 
$30,000  per  year.  No  doubt  these  two  secretaries,  and  others 
who  draw  similar  salaries,  are  well  worth  such  amounts  to 
their  employers.  But  the  point  to  be  emphasized  is  that  it  is 
sound  economy  whatever  the  scale  of  the  business  to  shift 
routine  duties  from  the  more  expensive  man  at  the  top  to  a 
subordinate  whose  time  is  less  costly. 

Each  minute  of  the  working  day  of  an  executive  drawing 
$5,000  a  year  costs  4.6  cents.  If  he  spends  fifteen  minutes 
in  the  routine  of  opening  the  morning  mail,  it  means  69  cents 
a  day,  $4.14  a  week,  $207  during  the  business  year. 

If  this  man  wastes  thirty  minutes  hunting  for  some  cor- 
respondence which  should  have  been  filed  and  promptly  pro- 
duced by  a  clerk;  another  thirty  minutes  on  unimportant 
material  which  could  readily  have  been  attended  to  by  some- 
one else;  a  third  thirty  minutes  answering  correspondence  of 
a  merely  routine  nature;  a  fourth  thirty  minutes  hunting 
for  telephone  numbers,  waiting  for  calls,  or  answering  un- 
important calls;  a  fifth  thirty  minutes  in  ridding  himself  of 
certain  visitors  who  should  have  been  diplomatically  side- 
tracked at  the  start,  his  concern  loses  thereby  $6.90  daily, 
$2,070  annually. 

The  Secretary  Promotes  His  Chief's  Efficiency 

This  loss  as  computed  by  no  means  represents  fully  the 
injury  sustained.  The  various  annoyances  to  which  an  execu- 
tive under  the  above  conditions  is  subjected  break  up  the  day, 
distract  the  attention  until  it  becomes  difficult  to  concentrate, 
in  short,  put  a  damper  upon  creative  work.  Worse  still,  the 
executive  thus  annoyed  and  yet  feeling,  as  he  should,  that  the 


70 


THE  BASIS  OF  PERSONAL  SYSTEM 


firm  pays  him  for  constructive  work,  is  apt  after  a  time  to 
develop  as  a  sort  of  shield  a  caustic  tone  toward  callers,  a 
curtness  over  the  telephone,  a  slowness  in  answering  com- 
munications which  costs  his  firm  dear  in  terms  of  lost  good- 
will. 

As  a  means  of  eliminating  losses  of  money  or  good-will 
and  at  the  same  time  enlarging  the  executive's  output  of  crea- 
tive work  and  increasing  his  ability  to  co-operate,  the  private 
secretary  is  invaluable.  The  degree  to  which  the  executive 
is  able  to  utilize  the  services  of  the  secretary  often  measures 
his  own  advancement  or  undoing. 

Selecting  a  Secretary — The  "Hire  and  Fire"  Policy 

The  importance  of  the  secretary's  place  in  the  scheme  of 
things  demands  that  care  be  exercised  in  his  selection.  If  the 
"hire  and  fire"  policy  works  out  badly  in  factories,  as  all 
progressive  employers  agree,  it  is  even  worse  when  practiced 
in  the  private  office,  for  the  secretary  brought  in  thus  on 
impulse  may  be  little  able  to  perform  the  valuable  services 
required,  and  on  the  other  hand,  owing  to  the  confidential 
nature  of  his  duties,  his  summary  ejectment  may  prove  very 
unwise. 

It  is  a  particularly  reckless  form  of  the  *'hire  and  fire" 
policy  to  leave  the  matter  to  some  friend  or  employment 
bureau  or  secretarial  school.  Temperament  in  the  executive 
as  well  as  in  the  applicant  is  too  important  to  permit  the 
opinion  of  a  third  person  to  be  final. 

The  best  way  is  to  make  the  selection  according  to  a 
systematized  procedure.  The  executive  who  sets  out  to  stand- 
ardize the  methods  of  hiring  used  by  his  concern,  including 
his  own  methods  in  the  selection  of  a  secretary,  thereby  treats 
applicants  fairly  since  such  methods  place  employees  where 
they  are  best  fitted  to  work.  He  promotes  the  interests  of 
the  firm  because  in  the  long  run  such  an  employment  plan 


THE  PRIVATE  SECRETARY 


71 


secures  the  best  possible  services  for  a  given  cost.  And  he 
advances  his  own  interests  since,  as  John  Wanamaker  so  well 
puts  it,  "the  degree  and  height  of  his  mastery  and  success 
accord  absolutely  with  the  number  and  efficiency  of  the  staff 
which  rises,  in  decreasing  numerical  strata,  to  support  him- 
self at  the  top." 

Where  to  Find  Suitable  Applicants 

In  securing  applicants  such  possible  sources  may  be  em- 
ployed as  want  advertisements,  particularly  those  placed  in 
the  best  mediums,  employment  bureaus  of  high  rank  which 
specialize  in  commercial  positions,  and  commercial  depart- 
ments in  the  public  high  schools,  business  colleges,  secretarial 
schools,  colleges  and  universities,  especially  those  offering 
commercial  training.  The  promotion  of  some  present  em- 
ployee, one  of  the  best  of  all  methods,  will  be  mentioned  later 
in  another  connection. 

The  Secretary's  Qualifications 

The  qualifications  to  be  sought  in  the  applicant  vary 
somewhat  with  the  position,  the  salary  to  be  paid,  etc.,  but  the 
following  may  be  mentioned  as  important : 

Education:  What  has  been  the  applicant's  schooling? 
What  can  be  said  of  his  general  knowledge? 

Professional  attainments:  Is  he  an  efficient  stenographer? 
a  neat,  rapid,  and  accurate  typist?  Does  he  understand 
filing  systems,  and  the  use  of  such  office  equipment  as  adding 
machines,  duplicators,  and  addressing  machines?  Has  he  a 
thorough  knowledge  of  business  correspondence?  Does  he 
know  something  of  bookkeeping,  advertising,  business  man- 
agement, and  of  subjects  or  sciences  particularly  connected 
with  our  own  line  of  business?  What  has  been  his  experi- 
ence? 

Dependability:  Is  he  a  person  whom  we  could  take  into 
our  full  confidence?  Would  he  be  discreet,  incorruptible, 
loyal?     Could   his   memory   and  methods   of   recording  be 


72  THE   BASIS   OF   PERSONAL   SYSTEM 

depended  upon  for  such  everyday  details  as  appointments, 
the  keeping  of  promises,  producing  papers  when  wanted? 

Initiative:  Is  he  able  to  think  for  himself?  Has  he 
energy  plus  imagination,  or  would  he  wait  to  be  told  what 
to  do  and  stop  at  that?  Can  he  look  ahead?  Is  he  able  to 
stimulate  others  and  direct  them  as  well? 

Tact:  Does  this  applicant  possess  sympathy,  courtesy, 
politeness,  patience,  diplomacy?  In  handling  our  corre- 
spondence and  our  callers  what  sort  of  an  impression  would 
he  make?  Would  he  be  able  to  get  along  with  our  own 
people  ? 

Personal  traits:  How  about  his  voice,  his  facial  expres- 
sion, his  manner  of  standing  or  sitting,  his  way  of  speak- 
ing? Is  he  personally  neat  and  cleanly  and  of  some  refine- 
ment?   Has  he  good  health? 

Teachableness:  Would  this  applicant  be  willing  and 
eager  to  learn  or  does  he  think  he  knows  it  all?  Would  it 
be  effort  wasted  to  try  to  get  him  to  improve  or  has  he  the 
power  of  growth? 

Interest  in  our  business:  Has  he  real  interest  in  this  line 
of  business,  in  our  firm  in  particular,  and  in  his  prospective 
employer's  personal  needs  and  requirements?  Would  he 
study  this  position  and  make  our  interest  his  own,  or  does 
he  look  upon  it  merely  as  a  means  of  filling  in  time,  a  pos- 
sible livelihood? 

The  Rating  of  the  Various  AppHcants 

The  answers  to  some  of  these  questions  can  be  secured 
very  readily  from  the  preliminary  letter  of  application,  others 
from  the  references  submitted,  many  from  the  personal  in- 
terview, while  for  certain  others  written  examinations  should 
be  devised.  The  tests  devised  by  the  United  States  Civil 
Service  Commission  for  the  selection  of  stenographers  will 
prove  helpful  in  this  connection. 

The  decision  as  to  which  applicant  is  to  be  preferred  de- 
pends finally  upon  his  rating  as  a  whole.  One  applicant  will 
have  shown  himself  unusually  proficient  in  taking  dictation, 
another  has  been  found  exceptionally  qualified  in  filing  sys- 


THE  PRIVATE  SECRETARY  73 

terns,  or  handling  callers,  or  thorough  knowledge  of  the  busi- 
ness, etc.  The  employer  should  not  expect  an  applicant  to 
grade  100  per  cent  in  all  respects — such  a  prodigy  is  not  to 
be  found — but  should  tender  the  position  to  the  one  whose 
abilities  most  nearly  meet  the  requirements. 

Standardized  Conditions  for  the  Secretary 

Upon  taking  up  his  new  work  the  private  secretary  should 
be  provided  with  the  equipment  which  renders  good  work 
possible.  The  same  rule  applies  to  the  secretary's  position  as 
applies — we  have  seen — to  the  office  conditions  of  the  execu- 
tive, namely :  to  secure  superior  output,  provide  standardized 
conditions. 

A  typewriter  desk  into  which  the  machine  drops  when  not 
in  use,  a  holder  for  the  stenographer's  note-book,  a  comfort- 
able chair,  good  light,  a  supply  of  stationery,  carbons,  clips, 
scissors,  and  the  like  indicate  the  more  common  requirements. 
In  addition  there  are  certain  supplies  which,  while  they  may 
not  be  termed  essentials,  yet  make  for  increased  effectiveness. 
Should  the  letterheads  be  stored  in  one  drawer,  the  envelopes 
in  another,  the  carbon  paper  in  a  third,  and  the  carbon  sheets 
in  their  original  box  or,  what  would  amount  to  much  the 
same  in  the  end,  all  piled  into  the  same  drawer,  the  assem- 
bling of  these  materials  in  the  typewriter  entails  much  waste 
effort. 

A  desk  drawer  fitted  with  partitions,  inclined  toward  the 
rear,  keeps  the  sheets  separate  and  speeds  up  the  process  of 
assembling. 

Owing  to  the  mass  of  details  which  comes  to  the  private 
secretary  for  attention,  he  can  very  well  use  much  of  the 
equipment,  such  as  the  day's  work  file  and  the  tickler,  dis- 
cussed in  previous  chapters.  In  fact,  not  a  few  private  secre- 
taries are  really  executives,  with  stenographers  to  take  their 
dictation  and  filing  clerks  under  their  direction.     Needless  to 


74        THE  BASIS  OF  PERSONAL  SYSTEM 

say,  such  secretaries  can  profitably  be  supplied  with  the  neces- 
sary equipment  which  aids  in  systematizing  an  executive's 
work. 

The  Secretary's  Desk  with  Respect  to  Office  Layout 

In  arranging  the  office  layout,  the  secretary's  desk  should 
be  carefully  fitted  into  the  scheme  of  things.  Executives 
often  prefer  that  the  secretary  have  a  separate  room,  con- 
nected by  buzzer,  telephone,  and  door,  in  order  that  the  annoy- 
ance of  the  typewriter  may  be  removed  and  visitors  may  be 
received  in  privacy.  For  those  who  do  not  follow  this  plan, 
the  arrangement  of  the  real  estate  office  shown  on  page  58 
is  worth  noting.  With  the  office  arranged  in  this  way,  the 
secretary  on  his  revolving  chair  is  able  to  turn  easily  ta  the 
typewriter  or  the  double  desk.  This  plan  provides  consid- 
erable working  space  and  a  convenient  arrangement  in  hand- 
ling telephone  calls  or  dictation. 

Training  as  the  Source  of  Competent  Secretaries 

It  was  a  far-sighted  corporation  head  who  not  long  since 
remarked,  "We  can't  hire  executives ;  we  have  to  grow  them." 
His  remark  applies  with  considerable  force  to  the  private 
secretary.  The  secretary  perfectly  trained  and  competent 
to  perform  at  once  his  most  valuable  services  is  simply  not 
to  be  hired. 

Frequently  it  will  be  found  that  the  qualifications  men- 
tioned on  a  preceding  page  are  possessed  in  the  main  by  some 
above-average  stenographer  already  in  the  firm's  employ. 
She  is,  let  us  say,  an  excellent  typist,  rapid  and  accurate  in 
taking  dictation,  absolutely  dependable,  ambitious,  has  grad- 
uated from  the  local  high  school  and  during  her  four  years' 
tenure  has  shown  herself  most  loyal  to  the  interests  of  our 
firm.  Would  it  not  be  more  feasible  to  promote  her  to  this 
secretaryship  than  to  seek  elsewhere? 


THE  PRIVATE  SECRETARY  75 

The  Best  Possible  Results  from  a  Given  Cost 

"Impossible,"  some  will  claim.  '*We  invariably  employ 
graduates  of  secretarial  schools  at  salaries  of  $35  to  $40  per 
week  and  they  certainly  make  poor  enough  secretaries,  as  our 
experience  goes  to  prove."  Very  true,  no  doubt.  In  some 
executive  offices  even  $90  per  week  would  be  far  too  little 
to  pay  for  secretarial  services.  Nevertheless,  the  man  whose 
duties  and  whose  importance  in  the  organization  justifies  an 
appropriation  not  exceeding  $20  a  week  for  secretarial  assist- 
ance often  insists  upon  a  $75-a-week  secretary.  No  others, 
he  claims,  are  competent!  The  point  here  insisted  upon  is 
not  that  secretaries  be  poorly  paid,  far  from  that.  But  every 
executive  is  justified,  according  to  his  position,  in  making  a 
certain  expenditure  for  secretarial  services  and  no  more.  It 
is  his  duty  to  secure  maximum  results  within  that  sum. 
Very  frequently  this  implies  that  the  above-average  stenog- 
rapher should  be  promoted  and  afforded  some  little  training 
for  her  new  position. 

A  Special  Training  Course 

There  are  a  few  excellent  books  devoted  to  secretarial 
work,  and  the  study  of  their  specific  directions  and  sugges- 
tions simplifies  the  problem  of  training.  There  is  such  a  thing 
as  the  professional  spirit  which,  once  we  have  it,  leads  us  on, 
makes  us  grow.  In  the  present  instance  such  a  spirit  once 
stirred  into  being  by  the  study  of  these  secretarial  books' may 
after  a  time  transform  the  promising  beginner  into  a  com- 
petent secretary. 

Books  on  secretarial  training  may  very  well  be  followed 
by  works  on  filing  and  indexing.  The  student  of  such  works 
does  not  need  to  be  told  that  accuracy  in  filing  is  important, 
and  is  able  within  a  comparatively  short  time  to  develop 
a  competency  with  filing  systems  considerably  beyond  that 
which  the  employer  alone  would  be  able  to  insure.     With 


76  THE  BASIS   OF   PERSONAL   SYSTEM 

such  knowledge  the  secretary  can  aid  materially  in  working 
out  the  form  and  arrangement  of  the  employer's  personal  files. 

Handling  Correspondence  Without  Dictation 

The  goal  commonly  set  for  the  secretary  by  his  employer 
is  the  ability  to  handle  correspondence  without  dictation.  Too 
often  the  employer  discovers,  however,  that  such  correspond- 
ence is  so  error-laden  as  to  be  unsafe  or  trite  and  exasperating 
with  its  customary  "Your  letter  of  the  13th  received  and 
contents  noted,"  and  "Hoping  to  be  favored  with  your  reply." 

While  the  word  for  word  dictation  by  the  executive  may 
at  first  seem  the  easiest  solution  it  is  really  no  solution  at  all ; 
the  problem  is  to  fit  the  secretary  to  take  hold  for  himself. 
The  principles  upon  which  effective  correspondence  depends 
have  been  presented  in  several  excellent  texts  and  the  study 
of  these,  even  the  reading  of  one  of  them,  cannot  fail  to  secure 
improvement.  The  articles  devoted  to  sales  correspondence 
in  the  current  magazines  will  be  found  helpful.  This  part  of 
his  training  provides  the  secretary  with  standards  for  corres- 
pondence, numerous  directions  as  to  how  these  standards  are 
to  be  applied,  and  stimulus  to  make  such  applications  daily. 

A  Knowledge  of  the  Company's  Business 

The  business  letter,  however,  depends  not  alone  on  the 
secretary's  knowing  how  to  write  but  also  on  his  knowing 
what  to  write  about,  in  other  words,  his  knowledge  of  this 
particular  business  and  its  daily  operation.  An  employer 
complamed  of  a  certain  private  secretary  because  *'She  doesn't 
somehow  get  into  the  swing  of  things."  It  was  discovered 
later  that  during  her  two  years'  employment  she  never  went 
further  into  the  plant  than  the  first  floor  of  the  office  building 
in  the  front  yard.  The  purchasing,  the  advertising,  and  the 
accounting  departments  on  the  second  floor,  the  twenty-acre 
plant  with  its  belching  furnaces  and  tall  chimneys,  were  to 


THE  PRIVATE  SECRETARY  ^jj 

her  a  closed  book.     She  was  unable  to  get  into  the  swing  of 
things  because  she  was  never  in  touch  with  the  business. 

It  may  seem  far-fetched  to  include  a  trip  through  the 
establishment,  with  an  explanation  of  its  details  of  operation 
in  the  training  of  the  private  secretary.  Yet  this  is  a  good 
beginning.  This  training  can  be  excellently  supplemented  by 
a  book  which  treats  of  the  particular  industry;  by  the  cata- 
logues, booklets,  and  other  material  prepared  by  the  firm's 
advertising  department;  and  by  the  executive's  instruction 
as  he  works  through  the  day's  routine 

Instructions  by  the  Executive 

The  last  is  by  far  the  most  important  in  illuminating 
the  business  and  its  particular  requirements,  and  it  need  not 
be  at  all  formal  and  time-consuming.  For  much  of  it  the 
executive  need  only  do  his  thinking  aloud.  Since  the  secre- 
tary's most  important  duty  concerns  correspondence,  the  chief 
purpose  of  the  instruction  will  be  to  teach  the  secretary  to 
handle  the  bulk  of  the  correspondence  himself. 

"Here's  a  customer  who  sets  up  one  of  our  No.  2  Oil 
Kings,"  declares  the  executive, showing  the  secretary  a  letter 
he  has  just  received,  "only  to  find  the  fly-wheel  broken  to 
pieces.  He'll  be  pretty  anxious,  don't  you  suppose,  to  get  a 
new  wheel,  the  same  number  R  3249,  so  he  can  get  right  to 
work?  We'll  express  him  one,  at  once."  Executive  dictates 
letter  to  customer. 

"Now  this  order  ought  to  go  over  to  the  shipping  depart- 
ment this  morning,"  he  continues,  "so  they  can  get  started 
on  it."     Dictates  order. 

"But  what's  going  to  become  of  our  profits,  Mr.  Smith," 
he  inquires,  "if  we  let  the  railroad  companies  break  up  our 
machines  like  that?  I  guess  you'd  better  make  a  copy  of 
this  letter  for  Mr.  Jones,  our  claims  man." 

A  day  or  two  later  the  executive  says,  "Here's  another 


78        THE  BASIS  OF  PERSONAL  SYSTEM 

one  of  those  complaints  about  an  Oil  King  damaged  in  transit ; 
this  time  it's  this  gear-wheel,"  pointing  to  a  diagram  of  the 
engine  in  which  its  parts  are  numbered,  K  3056.  "Let's  see, 
how'd  we  settle  that  other  case?"  he  inquires  in  perplexity. 
The  secretary  volunteers  most  of  the  information,  the  execu- 
tive supplying  a  detail  here  and  there. 

"Yes,  yes,"  the  manager  says,  "that's  what  we  did.  I 
guess  you  can  handle  this  in  the  same  way,  yourself." 

The  secretary  with  a  new  sense  of  responsibility,  consults 
certain  carbons  in  the  files  and  after  a  time  has  an  excellent 
letter  waiting  to  be  signed. 

"This  letter  to  Thompson  is  all  right,"  comments  the 
executive  when  he  comes  to  sign  it.  "That's  the  way  to  talk 
to  our  customers."  Then  he  adds,  "How  about  shipping  and 
claims  ?" 

The  secretary  is  much  confused.  In  his  enthusiasm  over 
the  letter  he  has  overlooked  these  entirely. 

"Thompson  out  there  on  his  farm  wouldn't  care  much  for 
your  good  letter  unless  he  got  that  wheel,  would  he,  Mr. 
Smith?"  The  executive  laughs  heartily;  then  he  adds  with 
seriousness  "and  as  for  the  claims,  if  the  company  lost  its 
profits  it  couldn't  pay  our  salaries." 

Thus  the  training  goes  on. 

The  Developing  of  Initiative  and  Responsibility 

"But,"  someone  objects,  "such  a  nuisance!  I  could  dic- 
tate the  letters  myself  with  far  less  time  and  trouble." 

True,  but  shortsighted.  The  real  issue  here  is  not  this 
one  letter  but  tomorrow's  letters,  next  week's  letters,  that 
interminable  procession  of  letters  which  the  secretary  once 
trained  can  handle  but  which  otherwise  will  tie  the  executive 
to  his  desk.  From  this,  the  correct  point  of  view,  training  is 
as  capital  invested  at  compound  interest. 

Accordingly,  the  executive  for  a  time  keeps  the  secretary's 


THE  PRIVATE  SECRETARY 


79 


work  under  scrutiny,  looking  for  errors  and  making  sugges- 
tions particularly  at  the  time  of  signing  the  letters.  Mistakes 
will  appear,  and  some  letters,  even  under  the  reasonable  lee- 
way allowed  every  subordinate,  will  have  to  be  retyped.  Yet 
the  scrutiny  can  gradually  be  relaxed.  Before  long  his  secre- 
tary is  answering  letters  on  which  he  has  jotted,  "Xpress 
K  3128,"  "O  K,"  "Refer  to  Childs,"  or  *'Same  terms  as 
usual,"  and  after  a  time  even  these  brief  directions  are  ren- 
dered unnecessary.  It  is  the  sense  of  responsibility  placed 
upon  the  secretary,  the  knowledge  that  within  reasonable 
limits  his  discretion  has  full  sway  but  that  the  employer  has 
confidence  in  his  judgment,  which  stirs  his  initiative  and 
makes  him  feel  competent  to  render  most  valuable  service. 

The  Complaint  that  Secretaries  Do  Not  Think 

"But,"  the  objector  interposes  once  more,  "all  this  is  as- 
suming that  the  secretary  is  unusually  brilliant.  Now  in  my 
experience,  while  I  would  not  go  so  far  as  to  say  they  are 
without  brains,  the  average  secretary  does  not  think.  'Think ! 
think!'  I  have  had  to  tell  one  secretary  after  another." 

Let  us  analyze  this  complaint  which  has  been  voiced  in 
one  form  or  another  by  many  executives — the  detailed  and 
reiterated  directions  these  secretaries  require,  their  lack  of  in- 
sight into  the  day's  work.  It  is  granted  that  no  brief  could 
be  maintained  for  all  private  secretaries;  their  ranks  have 
been  invaded  by  the  incompetent  and  all  are  human.  But  as 
a  rule  the  failure  to  get  things  done  as  the  executive  wants 
them  is  because  he  does  not  know  himself  what  he  wants, 
consistently.  It  is  the  lack  of  system,  of  standards,  which  is 
really  to  blame  for  the  tangle,  since  the  whim  of  the  moment, 
and  not  a  clear-cut  standard,  determines  whether  the  typing 
or  the  choice  of  letterhead  is  to  please  him. 

In  order  to  satisfy  the  unsystematic  man  the  secretary 
must  be  a  mind  reader. 


8o  THE  BASIS   OF   PERSONAL   SYSTEM 

The  Unsystematic  Man  Hard  to  Satisfy 

Many  secretaries,  it  is  true,  are  adept  in  this  art.  When 
the  look  of  boredom  on  the  employer's  face  has  darkened 
into  just  the  proper  shade,  they  deftly  interrupt  the  caller 
and  maneuver  him  towards  the  door.  When  the  employer 
comes  in  full  of  "pep,"  they  bring  out  loads  of  work,  but  in 
sizable  lots;  when  he  is  on  "fag  ends,"  they  side-track  the 
irritating  complaint. 

To  get  the  most  benefit  from  a  secretary's  services  the 
wise  executive  will  himself  lead  the  way  in  co-operation.  By 
utilizing  various  short-cut  methods  and  standardizing  his 
own  part  of  the  team's  procedure  he  can  save  the  secretary's 
time  and  strength;  this  means  economical  operation. 

Willieun  A.  Field  Defines  Executive  Success 

Some  business  men,  it  is  true,  do  not  wish  to  standardize 
rheir  own  operations,  just  as  some  others  do  not  know  how 
to  delegate  work.  Yet  it  is  precisely  the  exercise  of  these 
two  arts,  delegating  and  standardizing,  which  is  the  execu- 
tive's business. 

"Analyze  the  career  of  the  successful  business  manager," 
says  William  A.  Field  of  the  Illinois  Steel  Company,  "and 
you  will  find  that  he  has  done  two  things :  by  elimination  and 
selection  he  has  fitted  competent  men  to  the  places  at  which 
the  work  focuses;  by  system  he  has  so  shifted  detail  to  the 
shoulders  of  subordinates  as  still  to  keep  the  essential  facts 
under  his  own  hand." 

A  Training  School  for  the  Coming  Executive 

There  are  few  positions,  indeed,  which  do  not  afford  some 
opportunity  to  practice  the  two  activities  specified  by  Super- 
intendent Field  as  the  essentials  of  executive  success.  Even 
the  young  manager  whose  force  is  but  a  corporal's  guard, 
even  the  beeinner  in  business  who  dictates  a  few  letters  to  a 


THE  PRIVATE  SECRETARY  gl 

stenographer,  has  the  opportunity  of  fitting  people  to  places 
where  the  work  focuses  and  of  shifting  detail  to  the  shoulders 
of  subordinates  so  as  still  to  keep  the  essential  facts  under 
his  own  hand. 

The  man  who  trains  himself  to  work  effectively  with  but 
a  single  subordinate  is  at  the  same  time  developing  his  power 
as  an  executive.  The  vast  bulk  of  tasks,  termed  collectively 
the  firm's  business,  he  later  will  become  able  to  subdivide  and 
delegate  as  he  now  does  the  work  heaped  upon  his  office  desk. 
The  principle  is  simple, yet  its  influence  is  most  far  reaching 
upon  the  executive's  daily  accomplishment  and  his  ultimate 
achievement. 


Exercises 

The  Waste  of  Petty  Annoyances 

A  drizzle  of  petty  annoyances  always  irritated  the  late  Cyrus  H, 
McCormick,  although  he  could  stand  undaunted  under  a  cloudburst 
of  adversity.  Superfluous  words  in  a  telegram,  a  bill  a  few  cents 
too  large,  the  loss  of  a  carpet  slipper,  were  things  which  made  him 
storm.  "He  made  more  fuss  over  a  pin-prick,"  declared  one  of  his 
valets,  "than  he  did  over  a  surgical  operation." 

Do  the  petty  odds  and  ends  of  business  get  on  your  nerves? 

Is  all  the  energy  with  which  you  come  down  to  the  office  used  up 
on  trifling  matters,  leaving  you  irritated  with  yourself  and  all  your 
co-workers  ? 

Are  important  initiatives  and  decisions  side-tracked  and  lost  sight 
of  while  the  devil  of  routine  rules  you  with  his  Iron  fork? 

Delegate  to  subordinates  these  routine  tasks,  and  hold  the  sub- 
ordinates responsible  for  their  stewardship. 

Important  and  Unimportant  Tasks 

In  carrying  out  this  plan  the  executive  is  called  upon  to  distin- 
guish between  important  and  unimportant  tasks.  As  William  James 
points  out,  what  makes  a  thing  important  or  unimportant  to  a  man 
is  something  which  no  rules  can  teach  in  advance.  Still,  a  pretty 
safe  guide  is  to  keep  your  chief  purpose  in  mind  for  use  as  a  stand- 


B2 


THE  BASIS   OF   PERSONAL   SYSTEM 


ard  in  testing  all  these  possible  tasks.  The  more  vital  the  connec- 
tion between  your  chief  purpose  and  a  certain  task,  the  closer  you 
should  grip  that  task  as  something  to  which  you  must  personally 
attend.  The  more  remote  tasks  are  delegated  to  subordinates,  the 
far  remote  perhaps  to  the  waste-basket. 

On  a  sheet  of  paper  draw  up  Test  Chart  4.  Selecting  some  typical 
day's  work  as  a  sample,  fill  out  the  first  column  in  chronological 
order;  and  then  the  other  columns  to  correspond. 


Things  I  Diu 
Personally 

FROM   9   A.M. 

TO    5    P.M. 

Of  These^  the  Following  Should  Have 

Been  Done  by 

(Indicate  by  check  mark  V) 

Myself       Co-officer    ^^^^^H^ 

Other 
Subordi- 
nate 

Test  Chart  4.     Whose  Work? 


In  looking  over  the  last  column  but  one  of  this  diagram,  in  view 
of  the  check  marks  there  shown  and  your  own  value  to  the  company 
as  represented  by  your  salary,  how  much  per  week  are  private  secre- 
tarial services  worth?  Add  to  this  the  indirect  losses  specified  on  a 
preceding  page,  and  what  is  the  sum  total  ? 

This  amount  represents  with  fair  accuracy  the  expenditure  justi- 
fied in  your  case  for  secretarial  services.     The  problem  next  to  be 


THE  PRIVATE  SECRETARY 


83 


solved  is  how  the  secretarial  services  purchased  by  this  sum  can  be 
employed  most  productively.  For  this  purpose  Test  Chart  5  has  been 
devised.  It  contains  ten  questions,  to  each  of  which  a  possible  credit 
of  ten  points  attaches.  Consider  your  methods  critically  as  you 
answer  these  questions  one  by  one,  and  credit  yourself  in  the  column 
at  the  right  a  10,  a  5,  a  2,  or  whatever  your  actual  practice  in  the 
light  of  standard  practice  will  justify.  A  perfect  score  is  100  points. 
What  do  your  credits  total? 


Questions 


1.  Do  I  know  how  to  delegate  work  ? 

2.  Have  I  organized  thoroughly  the  duties  of  my  pres- 

ent   position  ? 

3.  Is  my  work  such  that  the  quality  of  secretarial  ser- 

vices makes  an  important  difference  in  results? 

4.  Do  the  means  which  I  employ  secure  desirable  appli- 

cants ?    

5.  Are  my  various  selection  tests  reasonably  certain  to 

secure  the  applicant  best  qualified? 

6.  Does  my  secretary  work  under  standardized  condi- 

tions with  respect  to  equipment  ? 

7.  Do  I  know  consistently  what  I  want  in  secretarial 

results  ?    

8.  Is   my    secretary    assuming   the    responsibilities    he 

should  ? 

9.  Am  I  cultivating  the  secretary's  initiative? 

ID.  Were  I  my  secretary  would  I  hold  my  employer's 

habits  and  methods  of  work  in  high  respect?. . . 


Total. 


Credits 


Test  Chart  5.     Securing  Best  Results  from  the  Private  Secretary 


CHAPTER  VI 

A  SERVICEABLE  MEMORY 

The  test  of  a  good  memory  is  that  it  shall  be  serviceable ; 
that  the  mind  shall  be  furnished  and  ready  with  just  the  sort 
of  facts  which  may  be  needed,  and  free  from  the  encum- 
brances of  useless,  irrelevant,  or  distracting  material. — 
Carl  Emil  Seashore,  Professor  of  Psychology. 

The  Tool  Which  Is  Used  Most  of  All 

The  executive  may  lighten  the  burden  of  details  by  means 
of  ingenious  mechanical  aids;  he  may  standardize  to  a  high 
degree  his  working  conditions;  he  may  surround  himself  with 
able  co-workers;  yet  there  will  remain,  after  all,  certain  things 
which  must  be  entrusted  to  memory. 

It  is  safe  to  say  that  the  business  man's  most  immediate 
need  is  a  serviceable  memory — which  means  a  store  of  useful 
knowledge  always  at  hand.  Such  a  memory,  whether  material 
or  acquired,  is  an  invaluable  aid  to  success. 

"In  the  practical  as  in  the  theoretic  life,"  declares  William 
James  with  much  truth,  "the  man  whose  acquisitions  stick  is 
the  man  who  is  always  achieving  and  advancing-,  whilst  his 
neighbors,  spending  most  of  their  time  in  relearning  what  they 
once  knew,  but  have  forgotten,  simply  hold  their  own." 

The  Memory  that  Gets  Results 

The  great  importance  and  obvious  utility  of  a  "good" 
memory  have  led  many  otherwise  sensible  men  to  foolish 
extremes  in  their  pursuit  of  the  kind  of  memory  that  they 
most  admire.  To  the  man  who  fails  to  remember  names  and 
faces,  a  remarkable  facility  in  greeting  mere  acquaintances 
of  a  dozen  years  ago  by  name  and  station  seems  the  summum 


A  SERVICEABLE  MEMORY  85 

bonum  of  recollection.  Many  politicians  have  gained  popu- 
larity and  fame  because  of  such  readiness;  William  Jennings 
Bryan,  whose  memory  is  both  colossal  and  exact,  is  a  shining 
example  of  this  type.  Henry  Clay  had  the  same  sort  of 
memory. 

The  men  who  can  learn  things  by  heart  are  another  source 
of  envy  to  the  average  executive.  He  reads  with  wistful 
attention  how  Macaulay  could  repeat  the  *'Lady  of  the  Lake" 
after  hearing  it  read  once  and  how  other  literary  geniuses 

Knew  the  great  uncles  of  Moses, 

And  the  dates  of  the  Wars  of  the  Roses. 

The  vital  question  in  such  cases  is  not:  "How  did  these 
men  do  it,"  but  "What  good  would  such  a  memory  do  me?" 
The  lesson  to  be  learned  is  that  what  these  men  knew  and 
remembered  related  to  their  life-work  and  interest  and  was 
relevant  in  a  natural  way  to  their  respective  jobs.  Their 
memories  were  good  because  they  were  serviceable. 

If  knowing  that  Mr.  Brown's  first  name  is  George  and  that 
his  family  has  moved  to  a  charming  suburb  will  help  to  do 
that  important  piece  of  business  with  him,  it  is  worth  remem- 
bering. If  a  bit  from  Gray's  "Elegy"  will  aid  you  to  put 
over  that  big  contract,  memorize  the  potent  verse.  If  not, 
why  clutter  up  the  orderly  array  of  your  mental  files  with 
rubbish  ? 

Improving  the  Memory 

In  setting  out  in  a  very  practical  way  to  improve  the  mem- 
ory, that  is,  to  make  it  more  serviceable,  we  shall  save  both 
time  and  effort  by  distinguishing  at  the  outset  between  general 
retentiveness  and  methods  of  using  the  memory. 

It  is  the  conviction  of  William  James,  the  most  eminent 
psychologist  that  America  has  produced,  that,  "No  amount  of 
culture  would  seem  capable  of  modifying  a  man's  general  re- 
tentiveness.   This  is  a  physiological  quality,  given  once  for  all 


86         THE  BASIS  OF  PERSONAL  SYSTEM 

with  his  organization,  and  which  he  can  never  hope  to  change. 
It  differs  no  doubt  in  disease  and  health ;  and  it  is  a  fact  of 
observation  that  it  is  better  in  fresh  and  vigorous  hours  than 
when  we  are  fagged  or  ill.  We  may  say,  then,  that  a  man's 
native  tenacity  will  fluctuate  somewhat  with  his  hygiene,  and 
that  whatever  is  good  for  his  tone  of  health  will  also  be  good 
for  his  memory.  We  may  even  say  that  whatever  amount  of 
intellectual  exercise  is  bracing  to  the  general  tone  and  nutri- 
tion of  the  brain  will  also  be  profitable  to  the  general  retentive- 
ness.  But  more  than  this  we  cannot  say;  and  this,  it  is  ob- 
vious, is  far  less  than  most  people  believe." 

This  does  not  mean  that  the  memory  cannot  be  improved. 
What  is  to  be  emphasized,  however,  is  the  means  by  which  im- 
provement can  be  brought  about.  Abandon  attempts  to 
strengthen  a  general  power  of  memory.  Accept  without  mur- 
mur whatever  native  capacity  for  retention  you  have,  but  make 
the  most  of  it  by  a  proper  system. 

The  Man  Who  Remembers  Is  He  Who  Knows  How 

This  solution  need  discourage  no  one.  As  Professor  Sea- 
shore points  out,  "All  normal  persons  have  sufficient  capacity, 
if  only  they  will  use  it.  To  be  concrete,  the  average  man 
does  not  use  above  lo  per  cent  of  his  actual  inherited  capacity 
for  memory.  He  wastes  the  90  per  cent  by  violating  natural 
laws  of  remembering."  Through  his  superior  method  of 
recording  facts,  one  of  limited  native  retentiveness,  in  conse- 
quence, may  outstrip  by  far  his  well-endowed  but  planless 
neighbor.  System  does  it.  The  man  who  remembers  is  the 
man  who  knows  how. 

Why  "Memory  Systems"  Have  Long  Flourished 

Not  a  few  so-called  memory  systems  have  been  at  one 
time  or  another  enthusiastically  exploited,  sometimes  with 
most  extravagant  claims.     The  Loisette  system,  perhaps  the 


A  SERVICEABLE  MEMORY  87 

most  famous  of  these,  once  enjoyed  a  tremendous  vogue.  Peo- 
ple willingly  paid  fifty  dollars  for  its  set  of  lessons,  which  now, 
though  published  in  book  form  at  the  modest  price  of  one 
dollar,  are  utterly  neglected. 

These  memory  devices  usually  depend  upon  some  frame- 
work, which  is  mechanically  but  thoroughly  drilled  into  the 
mind.  Then  the  fact  to  be  remembered  is  associated  through 
some  fanciful  connection  with  the  framework,  which  connec- 
tion is  supposed  to  recall  it. 

The  Operation  of  a  Typical  Memory  System 

The  figure  alphabet,  as  an  example,  will  indicate  how  such 

a  scheme  operates.    Each  digit  is  represented  by  one  or  more 

letters,  as : 

.1,  2,  3,  4,  5,  6,  7,  8,  9,  o. 

t,  n,  m,  r,  1,  sh,  g,  f,  b,  s, 

d,  j,  k,  V,  p,  c, 

ch,  c,  z, 

"To  briefly  show  its  use,"  explains  Mr.  Pick  as  quoted  by 
Professor  James,  "suppose  it  is  desired  to  fix  1,142  feet  in  a 
second  as  the  velocity  of  sound;  t,  t,  r,  n,  are  the  letters  and 
order  required.  Fill  up  with  vowels  forming  a  phrase,  like 
'tight  run'  and  connect  it  by  some  such  flight  of  the  imagina- 
tion as,  that  if  a  man  tried  to  keep  up  with  the  velocity  of 
sound,  he  would  have  a  tight  run.  When  you  recall  this  a 
few  days  later  great  care  must  be  taken  not  to  get  confused 
with  the  velocity  of  light,  nor  to  think  he  had  a  hard  run 
which  would  be  3,CK)0  feet  too  fast." 

The  reader  may  object  to  this,  saying  that  he  could  much 
more  easily  learn  the  number  1,142  outright.  But  the  advo- 
cate comes  right  back  at  him.  "This  plan  will  develop  your 
memory.  What  would  you  not  give  to  recall" — and  he  names 
a  list  of  things  dear  to  our  ambitions.  Many  business  men 
yield  to  the  argument,  and  go  naively  about  their  lessons. 


88  THE  BASIS   OF  PERSONAL  SYSTEM 

Curious  Attempts  to  Strengthen  the  Memory 

The  purchasing  agent  cons  the  dictionary,  believing  that 
when  he  has  doubled  the  number  of  new  words  he  can  learn 
in  thirty  minutes,  his  ability  to  remember  price  quotations 
will  be  increased.  The  accountant  in  his  attempt  to  recall 
tables  of  figures  practices  on  odd  combinations  of  the  alphabet, 
rxy,  rtz,  cycys.  Who  does  not,  in  fact  every  day,  catch  him- 
self pigeonholing  some  useless  scrap  of  information — ^just  to 
strengthen  his  memory? 

Thurlow  Weed's  Method 

A  classic  example  of  such  practice  is  the  experience  of 
Thurlow  Weed,  the  famous  journalist  and  politician  of  re- 
construction days.  Before  we  inquire  whether  or  not  he  was 
right,  let  us  see  what  he  did.     His  account  of  it  reads  thus : 

"I  could  remember  nothing.  Dates,  names,  appointments, 
faces — everything  escaped  me.  I  said  to  my  wife,  'Cather- 
ine, I  shall  never  make  a  successful  politician,  for  I  cannot 
remember,  and  that  is  a  prime  necessity  of  politicians.'  My 
wife  told  me  I  must  train  my  memory.  So  when  I  came 
home  that  night,  I  sat  down  alone  and  spent  fifteen  minutes 
trying  silently  to  recall  with  accuracy  the  principal  events  of 
the  day.  I  could  remember  but  little  at  first;  now  I  remem- 
ber that  I  could  not  then  recall  what  I  had  for  breakfast. 
After  a  few  days'  practice  I  found  I  could  recall  more. 
Events  came  back  to  me  more  minutely,  more  accurately, 
and  more  vividly  than  at  first.  After  a  fortnight  or  so  of 
this  Catherine  said,  'Why  don't  you  relate  to  me  the  events 
of  the  day,  instead  of  recalling  them  to  yourself?  It  would 
be  interesting,  and  my  interest  in  it  would  be  a  stimulus  to 
you.'  Having  great  respect  for  my  wife's  opinion,  I  began 
a  habit  of  oral  confession,  as  it  were,  which  was  continued 
for  almost  fifty  years.  Every  night,  the  last  thing  before 
retiring,  I  told  her  everything  I  could  remember  that  had 
happened  to  me  or  about  me  during  the  day.  I  generally 
recalled  the  dishes  I  had  had  for  breakfast,  dinner,  and  tea; 
the  people  I  had  seen  and  what  they  had  said;  the  editorials 
I  had  written  for  my  paper,  giving  her  a  brief  abstract  of 
them.     I  mentioned  all  the  letters  I  had  sent  and  received, 


A   SERVICEABLE  MEMORY  89 

and  the  very  language  used,  as  nearly  as  possible;  when  I 
had  walked  or  ridden — I  told  her  everything  that  had  come 
within  my  observation.  I  found  I  could  say  my  lessons  bet- 
ter and  better  every  year,  and  instead  of  the  practice  grow- 
ing irksome,  it  became  a  pleasure  to  go  over  again  the 
events  of  the  day,  I  am  indebted  to  this  discipline  for  a 
memory  of  somewhat  unusual  tenacity,  and  I  recommend  the 
practice  to  all  who  wish  to  store  up  facts,  or  expect  to  have 
much  to  do  with  influencing  men." 

A  Wasteful  Method 

This  experience  of  Mr.  Weed's  suggests  one  or  two 
queries.  In  the  first  place,  w^as  this  tenacious  memory  which 
Mr.  Weed  developed  due  to  an  improvement  in  his  native 
capacity  to  remember,  or  to  his  paying  more  careful  attention 
to  things  during  the  day,  knowing  that  he  was  to  be  held 
responsible  for  them  that  evening?  William  James  says  the 
latter  explanation  is  true,  that  Mr.  Weed's  physiological  reten- 
tiveness  was  in  no  way  changed  by  his  mental  exercise. 

In  the  second  place,  was  there  not  an  enormous  amount 
of  waste  effort  involved?  Think  of  the  time  needed,  every 
evening,  for  such  exhaustive  resurrection  of  the  day's  experi- 
ences! Not  every  man,  besides,  can  count  upon  a  "Mrs. 
Weed"  with  complaisancy,  sympathy,  and  time  to  bear  her 
part  in  the  process. 

As  a  rule,  we  should  avoid  the  waste  involved  in  methods 
such  as  Mr.  Weed  employed  and  seek  the  quickest  and  easiest 
ways  for  making  the  memory  serviceable. 

Since  the  man  who  remembers  is  the  man  who  knows  how, 
it  is  the  problem  of  finding  the  best  method  of  knowing  how 
that  presents  itself  here  for  analysis  and  solution.  An  idea, 
reaching  the  brain  through  the  organs  of  sight,  hearing,  taste, 
etc.,  makes  an  impression.  It  then  comes  into  contact  with 
ideas  already  present,  but  after  a  period  of  association  with 
them,  it  loses  its  character  of  a  newcomer  and  becomes 
pigeonholed  in  the  mental  equipment.     It  should  remain,  how- 


90 


THE  BASIS  OF  PERSONAL  SYSTEM 


ever,  responsive  to  recall,  and  be  able  to  gain  recognition  when 
it  answers  the  summons.  The  process  of  remembering  thus 
consists  of  four  steps — impression,  association,  recall,  and 
recognition — which  will  be  discussed  in  turn. 

Rules  of  Impression 

1.  Become  Thoroughly  Interested 

The  school  boy  who,  parrot-like,  repeats  his  tables  while 
thinking  of  that  swimming  hole  under  the  old  elm,  cannot 
somehow  make  those  tables  stick.  He  has  been  cheated  of 
results  by  mental  laziness,  the  same  enemy  which  years  later 
still  pursues  him  as  a  business  man.  Superficiality,  dilettant- 
ism, and  lack  of  interest,  are  bogs  in  which  forgetfulness  has 
rank  growth. 

Attention  and  interest  are  the  handmaidens  of  memory. 

In  the  front  rank  of  men  with  a  genius  for  acquiring 
information  stood  Roosevelt.  He  had  an  infinite  passion  for 
facts,  an  insatiable  thirst  for  information;  he  laid  violent 
hands  on  details,  and  he  promptly  pumped  a  visitor  dry.  The 
readiness  of  his  memory,  in  turn,  was  something  to  wonder 
at;  whether  it  concerned  his  rough-riders,  or  a  patrolman 
appointed  during  police  commissioner  days,  or  some  strange 
bird  from  the  upper  Amazon,  his  mind  had  it  ever  ready  at 
hand.  But  consider  the  man — his  energy,  his  enthusiasm,  his 
dynamic  interest  in  things! 

The  man  who  remembers  well  is  alert,  interested,  mentally 
ahve. 

The  first  rule  of  impression,  accordingly,  deals  with  just 
this  thing;  do  you  have  the  aim,  the  live  purpose,  the  incentive 
which  prepares  the  mind  as  a  seed  bed  for  impressions  ? 

2.  Be  a  Specialist,  Ignorant  of  Many  Things 

The  world  is  so  broad,  its  demands  so  numerous,  that  the 
man  interested  in  everything  spreads  himself  out  too  thin.  He 


A  SERVICEABLE  MEMORY 


91 


lacks  effectiveness,  and  in  pronounced  cases  becomes  merely  a 
distracted  incompetent. 

General  interest  must  be  sharpened  down  to  specific  in- 
terest. 

What  shall  these  specific  interests  be?  One's  vocational 
choice  largely  determines  this.  It  is  presumed  he  has  decided 
upon  some  phase  of  merchandising,  banking,  manufacturing, 
or  any  other  of  his  thousand  possibilities,  as  a  particular  ca- 
reer, and  he  now  tests  out  every  claimant  for  attention  by  the 
standard  of  his  major  purpose.  Does  it  bear  a  vital  connection 
to  this  purpose?  If  not,  it  is  excluded,  even  though  whole 
segments  of  his  possible  sphere  are  shorn  away. 

3.  Concentrate  Upon  the  Essentials  of  Your  Specialty 

Even  within  his  specialty,  one  does  not  memorize  every^- 
thing.  Part  of  the  information  he  needs  is  in  book  form,  part 
is  filed  away  in  his  cabinet,  while  part  is  jotted  down  on  his 
tickler.  The  mind  is  then  free  for  high  grade  work,  because 
the  burden  of  detail  has  been  turned  over  to  mechanical  aids. 

Keep  the  big  things  in  mind — the  little  things  on  paper. 

This  requires  that  ideas  be  ranked  according  to  their  im- 
portance; that  thinking  be  organized;  in  other  words,  that, 
with  his  main  purpose  as  a  guide,  one  shall  determine  what  is_ 
significant  and  what  is  trivial.  "The  only  a  priori  advice,'' 
says  James,  "that  can  be  given  to  a  man  embarking  on  life 
with  a  certain  purpose,  is  the  somewhat  barren  counsel:  'Be 
sure  that  in  the  circumstances  that  meet  you,  you  attend  to  the 
right  ones  for  your  purpose.'  To  pick  out  the  right  ones  is 
the  measure,  of  the  man.  The  genius  is  simply  he  to  whom, 
when  he  opens  his  eyes  upon  the  world,  the  'right'  characters 
are  the  prominent  ones.  The  fool  is  he  who,  with  the  same 
purpose  as  the  genius,  infallibly  gets  his  attention  tangled 
amid  the  accidents." 


4^"^-*^^^"^ 


92 


THE  BASIS  OF  PERSONAL  SYSTEM 


4.  Master  as  You  Go 

Retentiveness  of  memory  is  somewhat  dependent  upon  the 
particular  channel  through  which  the  consciousness  is  reached. 
One  man  remembers  best  a  name  when  he  reads  it,  another 
when  he  heaj:s^it,  another  when  he  writes  it  down.  With  most 
persons,  a  combination  of  impressions  is  best.  Listen  to  the 
newcomer's  name  and  the  sound  of  his  voice,  feel  the  quality 
of  his  hand-shake,  notice  his  appearance,  write  his  name  down 
at  the  first  opportunity. 

Impress  the  mind  through  all  possible  channels.  The  result 
sought  is  a  clear-cut,  definite  impression,  far  different  from 
the  blurred  image  with  which  lazy,  superficial  learning-by-rote 
provides  the  mind.  Observe  sharply,  concentrate,  grasp  the 
idea  in  a  single  firm  impression. 

Rules  of  Association 

I.  Analyze  for  Principles 

After  impression,  comes  association.  To  the  efficient 
memorizer,  the  process  here  is  strikingly  like  the  keeping  of  a 
stores  room.  The  incoming  shipments  are  not  dumped  pell- 
mell  into  the  stores  room — at  least  this  method  is  barred 
among  our  leading  business  houses — but  are  arranged  system- 
atically. Classifications,  often  of  an  elaborate  sort  with  ap- 
propriate symbols,  are  prepared,  with  bins  labeled  to  correspond 
and  a  perpetual  inventory  for  the  stores  clerk.  This  gets  re- 
sults. So  it  is  in  the  mind,  when  it  comes  to  dealing  with 
mental  materials. 

There  is  nothing  occult  about  this,  no  mysterious  "faculty" 
of  memory.  The  brain  cells  under  the  impulse  of  ideas  sim- 
ply arrange  themselves  in  a  new  order,  or,  as  it  is  commonly 
stated,  form  a  path.  "Retention,"  says  William  James,  "is 
not  a  fact  of  the  mental  order  at  all.  It  is  a  purely  physical 
phenomenon,  a  morphological  feature,  the  presence  of  these 


A  SERVICEABLE  MEMORY 


93 


'paths'  in  the  finest  recesses  of  the  brain's  tissue."  The  more 
prominent  paths  are  in  general  those  over  which  the  trains  of 
thought  more  frequently  move. 

Principles  are  trunk  lines  running  through  mental  terri- 
tory. 

A  principle  does  not  become  a  principle  until  it  is  found 
to  serve  as  a  center  around  which  details  may  be  grouped,  a 
sort  of  trunk  line  to  which  the  details  are  feeders.  Just  as 
the  chief  stores  clerk  in  deciding  what  to  do  with  a  package 
of  screws  or  bolt  of  cloth  works  according  to  some  general 
system  of  classification,  so  in  arranging  the  mental  material 
we  proceed  according  to  a  certain  rule. 

2.  Discover  Relationships 

The  reader  who  at  the  time  of  commencing  this  book,  let 
us  say,  owns  a  Ford,  but  later  buys  a  car  of  a  different  make, 
is  not  thereby  obliged  to  relearn  the  automobile.  The  two  cars 
in  many  respects  are  similar,  and  he  soon  becomes  familiar 
with  the  differences. 

By  noting  similarities  and  differences  the  new  idea  is 
readily  assimilated  to  the  old. 

In  noting  similarities  and  differences,  one  proceeds  ac- 
cording to  the  principle  of  relationship.  Such  relationship 
may  be  illustrated  very  briefly  as  follows : 

TTT,    ,         1  \  automobile 

Whole  and  part  -^  ™.    ,  .     , 

^       (  1  imkm  bearmgs 

r-  J    a:    j.\  bauaua  peel 

Cause  and  effect  ■{        r  ■,,       ^       t 

(  we  fell  on  Broadway 

Abstract  and  concrete  \    .    / 

( pig  iron 

^  J  •     i  accountant 

Genus  and  species  -^  ^  ,      ^     .  ,     ^  ^  . 
^         I  John  Smith,  C.P.A. 


94 


THE  BASIS  OF  PERSONAL  SYSTEM 


In  remembering  a  series  of  freight  bills,  we  think  of  them 
as  expenses;  in  making  several  purchases  at  the  corner  gro- 
cery store,  we  think  of  them  perhaps  as  parts  of  a  picnic 
dinner. 

3.  Make  Use  of  Associations 

These  associations  may  be  obvious,  as  when  Miss  Smith 
is  mentally  tabbed  "stenographer" ;  or  far-fetched  as  was  the 
connection  between  "umbrella"  and  "door-way"  which  a  certain 
man  accustomed  to  forgetting  his  umbrella,  drilled  into  his 
mind  with  successful  effect. 

The  so-called  memory  systems  are  usually  nothing  beyond 
more  or  less  artificial  methods  of  connecting  things.  In  re- 
membering numbers,  Loisette,  for  instance,  gives  such  illus- 
trations as  these:  the  height  of  Pike's  Peak  is  14,147  feet; 
observe  that  the  number  consists  of  two  fourteens  and  a  half 
of  fourteen.  Fusiyama,  the  noted  volcano  of  Japan,  is  12,365 
feet  high ;  observe  that  this  number  is  made  up  of  the  number 
of  months  and  days  in  the  year — 12  and  365. 

Things  are  retained  more  easily  and  more  tenaciously  when 
bound  together  in  a  net-work. 

"The  'secret  of  a  good  memory',"  says  William  James, 
*'is  thus  the  secret  of  forming  diverse  and  multiple  associa- 
tions with  every  fact  we  care  to  retain.  But  this  forming  of 
associations  with  a  fact,  what  is  it  but  thinking  about  the  fact 
as  much  as  possible?  Briefly,  then,  of  two  men  with  the 
same  outward  experiences  and  the  same  amount  of  mere  na- 
tive capacity,  the  one  who  thinks  over  his  experiences  the 
most,  and  weaves  them  into  systematic  relations  with  each 
other,  will  be  the  one  with  the  best  memor)-.  The  merchant 
remembers  prices,  the  politician  other  politician's  speeches  and 
votes ;  and  both  remember  with  a  copiousness  which  amazes 
outsiders,  but  which  the  amount  of  thinking  they  bestow  upon 
these  subjects  easily  explains." 


A  SERVICEABLE  MEMORY 


95 


4.  Bind  Elements  Into  Large  Units 

These  principles  of  memorizing  were  applied  quite  con- 
sistently by  the  late  Edward  H.  Harriman,  and  they  go  far 
to  explain  his  amazing  memorj-.  But  Mr.  Harriman's  ability 
well  illustrates  the  fourth  principle,  which  we  may  state  as  the 
final  rule  of  association. 

"When  you  jump  from  one  thing  to  another,"  Mr.  Har- 
riman was  asked,  "do  you  have  to  stop  and  think  and  adjust 
yourself  to  the  new  mental  condition  created  by  the  considera- 
tion of  a  totally  different  subject?" 

*'No,"  he  answered. 

"You  are  not  conscious  of  any  change  in  the  speed  of  the 
mental  machinery,  as  it  were?  No  break  of  any  kind  when 
you  decide  what  to  do  in  this  case  and  immediately  what  to 
do  in  the  next — jumping  from  a  matter  in  New  York  City 
to  some  engineering  problem  in  Utah  or  California?" 

"No." 

"How  do  you  do  it?"  I  asked. 

"I  don't  know.  I  think,"  he  went  on  meditatively,  "that 
the  mind  is  like  these — what  d'ye  call  'em  on  this  desk? — 
these  pigeonholes.  A  man  comes  to  me.  I  listen  and  decide 
on  what  to  do ;  and  then — it  goes  into  a  pigeonhole." 

"And  it's  always  there?  No  trouble  in  finding  it  again  at 
any  time?" 

"It's  always  there."  He  was  thinking,  obviously  looking 
for  an  explanation.  "It's  always  there.  Whenever  I  need  it 
again  I  find  it  there." 

"And  you  don't  know  how  you  do  it?" 

"I  don't  know  how  I  do  it,"  he  repeated  after  me,  almost 
hypnotically.  Evidently  he  was  trying  to  find  out.  But  after 
a  moment  he  shook  his  head  and  said :  "But  there  are  fewer 
pigeonholes,  I  think." 

The  secret,  if  one  prefer  to  call  it  such,  is  revealed  in  the 


96  THE  BASIS  OF  PERSONAL  SYSTEM 

words,  "There  are  fewer  pigeonholes."     He  bound  elements 
into  larger  units. 

To  Mr.  Harriman,  an  earth  embankment  was  not  an  earth 
embankment  but  a  straight  track  between  two  stations.  This 
straight  track  between  two  stations  was  no  isolated  detail,  but 
a  part  of  the  Union  Pacific  Railroad.  And  this  in  turn  was 
but  a  link  in  that  world-wide  transportation  system  which  was 
Mr.  Harriman's  goal.  Spikes,  rails,  and  ties  he  bound  into 
construction  units;  construction  units  in  turn  he  bound  into 
railway  units;  and  these  finally  he  thought  of  as  parts  of  a 
vast  system — an  orderly  yet  progressive  sequence  in  thought. 

Rules  of  Recall 

1.  Recall  With  Accuracy 

Ideas  impressed  upon  the  brain  and  woven  into  its  fiber, 
are  retained;  in  other  words,  they  stick.  It  is  not,  however, 
for  that  purpose  that  one  remembers.  His  aim  in  memorizing 
ideas  is  to  have  them  when  he  wants  them.  Retention  is 
valuable  only  as  it  insures  recall.  The  problem  now  becomes 
how  to  employ  methods  which  will  insure  this. 

The  stock  keeper  of  the  mental  stores,  like  any  subordi- 
nate under  lax  discipline,  is  apt  to  fall  into  slothful  habits. 
When  called  upon  to  produce  a  certain  idea  with  which  he  has 
been  intrusted,  he  perhaps  returns  a  hazy,  blurred  copy  of  the 
original.  Should  this  be  accepted,  he  degenerates  into  still 
more  negligent  ways,  until  finally  the  requisitions  drawn 
upon  him  are  filled  with  whatever  causes  least  exertion.  Such 
easy-going  and  slovenly  recall  must  be  resolutely  prohibited 
from  the  first ;  "rule  thy  servant  or  he  shall  rule  thee," 

2.  Concentrate  on  the  Relevant 

Scarce  has  inaccuracy  been  avoided  before  another  and 
yet  more  serious  difficulty  arises.     The  mental  stores  are  re- 


A  SERVICEABLE  MEMORY 


97 


turned  accurately  enough,  but  without  discrimination.  As 
Mr.  Business  Man  recalls  the  directors'  meeting,  the  scene 
as  a  whole  comes  clearly  before  him,  then  some  certain  inci- 
dent connected  with  the  chairman,  next  the  chairman's  fishing 
party  followed  by  his  own  thrilling  capture  of  a  black  bass, 
until  finally,  Mr.  Business  Man  finds  himself  mind-wander- 
ing far  from  his  original  starting  point. 

To  recall  completely  all  one  has  ever  experienced  would 
require  as  many  years  as  this  experience  originally  occupied. 
Abbreviation  and  condensation  are  absolutely  necessary;  the 
four  hours  directors'  meeting  can  with  profit  be  boiled  down 
possibly  to  four  minutes,  and  as  for  the  black  bass — none  of  it 
for  the  business  day !  The  essentials  only  are  wanted,  and  all 
else  which  presents  itself  should  be  repressed  as  irrelevant. 

3.  Repeat  the  Recall  Frequently 

The  rather  common  way  of  memorizing  is  to  repeat  again 
and  again  the  impression.  Drill,  drill,  drill!  It  is  felt  that 
memorizing  should  precede  thinking,  for  logically  ought  we 
not  store  the  mind  with  the  necessary  raw  materials  before 
trying  to  reflect  upon  them?  "The  most  important  part  of 
every  Musselman's  training,"  says  Ratzel,  *'is  to  learn  the 
Koran,  by  which  must  be  understood  learning  it  by  heart,  for 
it  would  be  wrong  to  wish  to  understand  the  Koran  till  one 
knew  it  by  heart." 

This  process  is  extremely  wasteful.  It  emphasizes  im- 
pressions, whereas  what  is  desired  is  ability  to  recall.  One 
recall  is  worth  a  dozen  impressions. 

The  correct  procedure  is  first  to  stamp  the  mind  with  a 
clear  impression,  then  to  repeat  not  the  impression  but  the 
recall.  In  this  way  one  develops  a  wonderful  set  of  grappling 
hooks,  prompt  and  accurate  in  bringing  to  the  surface  what 
is  wanted. 


98  THE  BASIS  OF  PERSONAL  SYSTEM 

4.  Seek  Out  Clues  Persistently 

In  not  a  few  cases,  however,  when  one  seeks  to  recall  a 
memory  image,  no  response  is  secured;  the  image  apparently 
is  lost.  Again,  it  trembles  on  the  threshold,  but  does  not  come 
forth.    What  can  be  done  in  such  cases? 

Mere  blind  persistence  has  a  value,  just  as  the  man  of  the 
house,  in  looking  for  a  pack  of  cards  may  go  from  room  to 
room  turning  things  up-side-down,  and  perhaps  after  a  time, 
come  upon  said  pack  in  a  table  drawer.  But  all  this  means 
hard  work,  hence,  as  Seashore  points  out,  if  the  memory 
image  is  not  at  command  so  soon  as  sought  we  all  too  readily 
conclude  that  we  cannot  reach  it. 

The  old  injunction  of  try,  try  again  has  much  merit  here. 
But  not  planless  trying,  no  mere  stolid  turning  over  of  stones. 
The  object  sought  is  not  lost  in  some  isolated  crevice  of  the 
mind,  but  has  connected  itself  with  some  other  object,  which 
in  turn  becomes  available  as  a  clue.  Seek  connections  system- 
atically. Go  through  the  mind  in  the  manner  of  Sherlock 
Holmes. 

Rules  of  Recognition 

I.  Recognize  with  Vividness 

After  recall  comes  recognition.  The  image  desired  has 
risen  from  the  mental  recesses,  and  is  now  at  command.  Shall 
one  think,  "Yes,  this  is  right,"  in  a  dry  sort  of  way,  and  then 
think  no  more  ? 

Scarcely!  Our  friend  comes  to  mind  not  as  two  mere 
words,  "John  Smith,"  a  colorless  image,  but  as  some  one 
with  brown  eyes,  wavy  hair,  cheviot  suit,  walking  stick,  and 
so  on,  not  forgetting  the  cheery  smile.  He  is  a  real  flesh  and 
blood  person. 

The  image,  abundant  in  detail  and  intense  in  its  recall, 
enables  its  possessor  to  relive  the  scene  as  in  the  original; 
it  makes  recognition  realistic  and  tangible. 


A  SERVICEABLE  MEMORY  99 

2.  Express  the  Recognition  Appropriately 

In  the  most  subtle  way,  mind  and  body  are  Knit  together. 
Every  thought  tends  to  express  itself  in  action,  every  action 
tends  to  influence  thought. 

The  staid  executive  who  in  telling  football  stories  some 
Sunday  afternoon  for  the  benefit  of  his  boys,  crouches  on  the 
rug  as  he  illustrates  the  fierceness  of  his  tackling  just  in 
front  of  Old  Eli's  goal,  does  more  than  carry  his  listeners 
with  him.  He  makes  the  story  real  to  himself.  He  is  reliv- 
ing the  scene,  with  all  its  appropriate  actions. 

Most  of  our  mental  furnishings,  in  fact,  were  gained 
through  action  of  some  sort,  be  it  even  so  prosaic  as  walking 
or  smiling;  and  the  recognition  of  these  ideas  stored  in  mem- 
ory gains  in  vividness  as  these  same  actions  accompany  the 
recall. 

3.  Trust  Your  Memory 

But  perhaps  after  all  the  idea  recognized  is  the  wrong 
one;  are  we  not  possibly  being  tricked?  Questions  such  as 
this  once  raised  are  so  hard  to  down  that  not  a  few  persons  are 
always  uneasy  with  the  lurking  suspicion  that  their  memory 
is  playing  them  false. 

What  stores  "clerk  bent  on  filling  his  requisitions  with 
accuracy  and  dispatch  would  improve,  if  continually  suspected, 
questioned,  and  accused?  Would  not  this  miasma  of  doubt 
finally  break  down  his  moral  fiber,  make  him  in  reality  the  in- 
accurate, hopeless,  incompetent  he  was  suspected  of  being? 

Just  so  with  the  memory.  Doubt  clogs  its  action,  confi- 
dence inspires  it  to  better  service.  Do  not  therefore  be  anx- 
ious, for  your  memory  under  good  treatment  will  serve  you 
well. 

4.  Forget  the  Useless 

The  memory,  however  trustworthy  it  may  be,  deals  with 
the  past.     But  the  efficient  man  lives   in  the  present,   and 


lOO  THE  BASIS   OF   PERSONAL   SYSTEM 

looks  forward  to  the  future.  Let  the  dead  past  bury  its  dead. 
What  cares  he  for  it  save  as  it  aids  him  now  and  serves  as  a 
guide  to  the  future. 

The  memory,  accordingly,  must  be  selective.  While  hold- 
ing tenaciously  those  items  which  are  worth  holding,  it  must 
nevertheless  refuse  to  thumb  over  in  the  files  day  after  day  the 
transactions  long  since  closed.  Such  useless  accumulations, 
dead  timber,  should  be  allowed  to  float  gently  out  upon  the 
stream  of  thought  into  oblivion.  A  good  memory  and  a  good 
"forgettery"  are  firm  allies. 

Few  persons  have  the  resolution  to  do  this.  Like  the 
hermit  of  the  story  books,  always  collecting  but  never  throwing 
anything  away,  the  majority  run  the  risk  of  guarding  with 
jealous  care  a  junk  heap.  Yet  such  watchful  guarding,  be- 
sides being  wasteful,  is  unnecessary  because  the  idea  forgotten 
still  serves  us. 

We  are  the  sum  total  of  all  our  yesterdays,  and  even  the 
idea  lost  beyond  recall  has  had  its  influence  in  making  us  what 
we  are.  "Although  the  ready  memory  is  a  great  blessing  to 
its  possessor,"  says  William  James,  "the  vaguer  memory  of  a 
subject,  of  having  had  to  do  with  it,  of  its  neighborhood,  and 
of  where  we  may  go  to  recover  it  again,  constitutes  in  most 
men  and  women  the  chief  fruit  of  their  education."  This 
chief  fruit  is  not  lost  through  the  admonition,  "keep  the  mental 
decks  cleared  for  action." 

But  the.  mind  in  parting  with  its  useless  material  does  ex- 
perience a  feeling  of  relief,  and  its  energy  freed  from  the 
task  of  watchful  waiting  can  deal  with  the  needs  of  today.  In 
getting  through  the  day's  work  and  the  year's  work,  forgetting 
is  as  important  as  remembering. 

Sumn.ary  of  Rides 

The  rules  of  memory  culture  will  now  be  summarized,  that 
the  leader  more  readily  may  make  them  his  own.  (See  Fig- 
ure 13.) 


A   SERVICEABLE  MEMORY 


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I02  THE  BASIS  OF  PERSONAL  SYSTEM 

The  steps  in  memory  culture  are  direct,  certain,  perfectly 
practical,  and  the  goal  itself  is  worthy  of  attainment.  But 
the  only  way  to  reach  this  goal  is  through  practice,  practice, 
practice. 


Exercises 

Conditions  of  Memorizing 

Some  evening  when  you  are  "dead  tired"  memorize  the  following, 
or  some  other  verse  if  you  are  familiar  with  this,  noting  the  time 
required  before,  with  the  book  closed,  you  can  repeat  it  with  con- 
fidence : 

The  boast  of  heraldry,  the  pomp  of  pow'r, 
And  all  that  beauty,  all  that  wealth  e'er  gave, 

Await  alike  the  inevitable  hour. 

The  paths  of  glory  lead  but  to  the  grave. 

The  next  morning  after  such  a  good  night's  sleep  that  you  feci 
thoroughly  refreshed,  memorize  in  a  similar  way  this  or  some  other 
verse,  of  about  the  same  difficulty  as  the  first: 

Full  many  a  gem  of  purest  ray  serene 

The  dark  unfathom'd  caves  of  ocean  bear; 

Full  many  a  flower  is  born  to  blush  unseen. 
And  waste  its  sweetness  on  the  desert  air. 

Compare  the  amount  of  time  required.  After  two  weeks  have 
elapsed,  see  which  verse  you  can  recall  more  completely. 

What  do  you  conclude  as  to  fatigue  versus  freshness,  ill-health 
versus  vitality,  in  making  things  stick  in  the  mind? 

Methods  of  Memorizing 

Here  are  three  columns  of  words  which  you  are  to  study  in  each 
case  three  minutes,  exactly  as  directed: 


porosity 
plebeian 
iiawser 

recreant 

matadore 

diurnal 

reagent 

anachronism 

harbinger 

platoon 
thesaurus 

posteria 
stereoptical 

postulate 
erysipelas 

i 


Study  Column  I  by  sound.    Listen  carefully  as  someone  spells  the 
words  aloud  to  you,  trying  to  remember  each  sound;  have  him  con- 


A  SERVICEABLE  MEMORY 


103 


tinue  the  spelling,  you  meanwhile  trying  to  impress  the  ear,  until  the 
three  minutes  have  elapsed.  How  many  words  do  you  remember? 
How  many  do  you  spell  correctly? 

Study  Column  2  visually.  Look  sharply  at  the  letters,  the  number 
of  them  in  each  word,  their  appearance  and  order,  trying  hard  for 
three  minutes  to  impress  the  eye.  How  many  can  you  remember? 
Write  correctly? 

Study  Column  3  by  a  combined  method.  Spell  them  aloud  to  your- 
self, scrutinize  the  letters  sharply,  write  them  down.  Appeal  this 
time  to  ear,  eye,  and  muscle.  How  many  can  you  remember?  Spell 
correctly  ? 

Compare  the  results.  In  impressing  your  mind  which  approach 
seems  the  best  ?  Should  you  wish  to  recall  names  more  readily,  what 
suggestions  do  you  draw  from  this  exercise? 

As  a  further  test  we  have  here  four  columns  of  ten  words  each: 


I 

n 

HI 

IV 

long 

short 

good 

no 

sweet 

sour 

tall 

old 

hot 

cold 

up 

night 

early 

late 

lost 

little 

wet 

dry 

day 

sea 

thin 

thick 

yes 

found 

in 

out 

now 

short 

top 

bottom 

big 

bad 

buy 

sell 

true 

own 

more 

less 

land 

false 

Study  intently  Columns  I  and  II,  then  cover  this  second  column 
with  a  sheet  of  paper.  How  long  a  time  is  required  before,  by  looking 
at  Column  I  meanwhile,  you  can  repeat  correctly  in  order  each  word 
in  Column  II? 

Study  now  with  equal  care  and  for  the  same  length  of  time 
Columns  III  and  IV,  then  covering  the  latter  with  a  paper  and  look- 
ing at  Column  III,  how  many  words  of  Column  IV  can  you  repeat 
correctly  in  order? 

Why  is  the  second  test  so  much  more  difficult  than  the  first  ?  What 
principles  of  memorizing  are  here  illustrated? 


Not  Just  Plodding,  But  Planning 

When  you  deliberately  sit  down  and  consciously  exercise  your 
memory,  "keep  your  eye  on  the  ball."  Do  not  think  about  indefinite 
or  incongruous  things.  Take  one  definite  starting  point  and  group 
other  details  around  it.    Narrow  your  field  of  recognition  and  recol- 


104 


THE  BASIS  OF  PERSONAL  SYSTEM 


lection,  and  multiply  all  the  associations  which  bear  upon  the  topic 
you  wish  to  master. 

When  our  government  began  making  frames  of  airplanes  for  the 
Liberty  Motor — Samuel  Blythe  tells  us  in  the  Saturday  Evening 
Post — they  needed  spruce,  and  more  spruce — and  needed  it  "sea- 
soned." The  wet,  sappy  wood  was  no  good  for  the  purpose  and  the 
only  known  seasoning  process  was  nature's  own  which  took  from 
twelve  to  eighteen  months. 

Some  experts  went  to  work  on  the  problem  and  found  a  way  to 
shorten  the  time  to  four  months,  but  even  that  was  too  long.  Then 
"the  best  brains  in  the  country  tackled  the  job  and  a  process  was 
devised  by  which  spruce  can  be  seasoned  and  made  ready  for  use  in 
fourteen  days.  It  is  a  process  of  seasoning  by  saturation,  too  tech- 
nical to  be  detailed  here;  but  it  works." 

The  efficient  man  can  do  something  of  the  kind  with  his  memory. 
Saturate  your  mind  with  impressions  and  associations  connected 
with  the  sort  of  facts  you  wish  to  remember,  and  then  concentrate 
your  attention ;  you  can  make  more  speedy  and  more  sure  the  process 
of  getting  command  of  your  mental  stores. 


PART  III 
THE  DISPATCH  OF  A  DAY'S  WORK 

The  leaders  in  action  or  thought  are  not  magicians  but 
steady,  persistent  zvorkers. — Theodore  N.  Vail,  President 
American  Telephone  and  Telegraph  Company. 


CHAPTER  VII 

PLANNING  THE  DAY'S  WORK 

He  who  every  morning  plans  the  transactions  of  the  day, 
and  follows  out  that  plan  holds  a  thread  that  will  carry  him 
through  the  labyrinth  of  the  most  busy  life. — Victor  Hugo. 

The  Economy  of  Well-Planned  Activities 

The  mechanical  aids,  standardized  office,  competent  sub- 
ordinates and  dependable  memory  so  far  discussed,  afford 
a  reliable  basis  for  personal  system,  but  they  are  only  the 
basis.  Each  of  these  factors  must  be  skilfully  applied  to 
specific  tasks  before  a  full  mastery  over  routine  is  attained. 

In  large  measure,  this  skilful  application  to  specific  tasks 
depends  upon  planning.  The  items  which  comprise  the  day's 
work  must  be  surveyed,  analyzed,  ranked  in  relative  impor- 
tance, and  attacked  in  a  carefully  organized  way.  Such  sys- 
tematic procedure,  while  of  importance  to  every  business 
man,  is  of  especial  importance  to  the  executive,  since  in  his 
capacity  as  business  general,  superior  results  or  lack  of  results, 
as  the  case  may  be,  are  multiplied  manifold  in  the  activities 
of  subordinates. 

On  the  Offensive 

The  plan  as  an  instrument  for  the  attainment  of  results 
exalts  imagination  and  foresight,  instead  of  "hindsight"  and 
vain  regrets.     Precision  is  impossible  without  prevision. 

"The  marksman  who  had  no  bull's-eye  to  aim  at,"  very 
truly  observed  President  Cottingham  of  the  Sherwin-Wil- 
liams Company,  "never  made  the  top  record.  I  believe  in 
knowing  just  what  I  am  doing,  and  where  I  hope  to 
land." 

107 


Io8  THE  DISPATCH   OF  A  DAY'S  WORK 

The  plan  keeps  a  man  on  the  offensive;  "push  the  work, 
don't  let  it  push  you,"  is  the  ideal  it  makes  realizable.  The 
man  who  does  not  plan  is  crowded  by  unexpected  tasks  and 
is  haunted  by  yesterday's  loose  ends.  He  is  always  on  the 
defensive,  while  others  with  more  foresight  wage  wars  of 
aggression. 

'T  have  found  it  most  satisfactory,"  observed  the  late 
President  Easton,  of  the  Columbia  Graphophone  Company, 
"to  so  systematize  my  work  that  the  weak  spot  is  evident 
long  before  the  leak  appears.  This  leaves  me  the  strength 
that  some  men  put  into  the  losing  fight,  to  devote  instead  to 
the  initiative." 

Definite  Accomplishment 

The  mental  health  which  comes  from  planning  one's  work 
is  not  the  least  of  its  benefits.  Dr.  Adolph  Meyer,  one  of  the 
most  distinguished  alienists  of  the  present  day,  made  the  dis- 
covery that  among  the  untransmitted  causes  of  insanity  none 
counts  more  prominently  than  the  big  idea;  the  idea  that 
never  can  be  fully  made  over  into  concrete  reality  for  the 
very  reason  that  it  is  so  big.  The  far-reaching  scheme,  the 
still  unsubstantiated  venture,  the  revolutionary  theory,  the 
momentous  but  unperfected  invention — all  have  it  in  them  to 
take  possession  of  a  man;  they  hold  him  day  and  night;  he 
cannot  get  away. 

The  road  back  to  healthy-mindedness  is  to  be  learned  from 
the  man  who  works  at  smaller  tasks.  He  attacks  these  jobs 
directly  and  successfully.  They  are  finishable;  and  as  one 
after  another  is  put  out  of  his  way,  he  enjoys  the  satisfaction 
and  the  sense  of  freedom  which  come  from  a  definite  accom- 
plishment. The  big  idea  broken  into  parts  becomes  similarly 
get-at-able.  Neither  its  magnitude  nor  its  compelling  lure 
dissipate  the  confidence  as  the  parts,  according  to  pre-arranged 
plan,  are  attacked  in  turn.     Thus  planning  does  more  for  the 


PLANNING  THE   DAY'S   WORK  log 

distracted  worker  than  clear  away  the  day's  work,  it  insures 
for  him  a  healthy  mind  and  a  positive  attitude  toward  life 
which  keeps  him  mentally  on  the  offensive. 

A  well-considered  plan  of  procedure  may  appear  slow 
to  some  readers,  who  with  a  fine  disdain  for  system,  are  ac- 
customed to  push  directly  into  the  day's  work.  "Strenuosity," 
"hustling,"  the  attitude  of  "pushing  things  through,"  are 
indeed  traits  which  as  a  people  the  Americans  have  long  ad- 
mired. But  all  traits,  however  long  admired,  must  be  judged 
by  results.  Can  planless  strenuosity  meet  successfully  this 
test? 

Colonel  Roosevelt  An  Orderly  Worker 

The  name  of  Colonel  Roosevelt  is  synonymous  with 
"strenuosity"  in  popular  thought.  But  Colonel  Roosevelt 
represented  the  very  incarnation  of  order  and  regularity  in  his 
work.  "Every  morning,"  wrote  "K"  in  the  American  Maga- 
zine, during  the  Colonel's  term  as  president,  "Secretary  Loeb 
places  a  typewritten  list  of  his  engagements  for  the  day  on  his 
desk,  sometimes  reduced  to  five  minute  intervals.  And  no 
railroad  engineer  runs  more  sharply  upon  his  schedule  than 
he.  His  watch  comes  out  of  his  pocket,  he  cuts  off  an  inter- 
view, or  signs  a  paper,  and  turns  instantly,  according  to  his 
time-table,  to  the  next  engagement.  If  there  is  an  interval 
anywhere  left  over  he  chinks  in  the  time  by  reading  a  para- 
graph of  history  from  the  book  that  lies  always  ready  at  his 
elbow  or  by  writing  two  or  three  sentences  in  an  article  on 
Irish  folk-lore,  or  bear-hunting. 

"Thus  he  never  stops  running,  even  while  he  stokes  and 
fires;  the  throttle  is  always  open;  the  engine  is  always  under 
a  full  head  of  steam.  I  have  seen  schedules  of  his  engage- 
ments which  showed  that  he  was  constantly  occupied  from 
nine  o'clock  in  the  morning,  when  he  takes  his  regular  walk 
in  the  White  House  grounds  with  Mrs.  Roosevelt,  until  mid- 


no  THE  DISPATCH  OF  A  DAY'S  WORK 

night,  with  guests  at  both  luncheon  and  dinner.  And  when 
he  goes  to  bed  he  is  able  to  disabuse  his  mind  instantly  of 
every  care  and  worry  and  go  straight  to  sleep;  and  he  sleeps 
with  perfect  normality  and  on  schedule  time," 

Such  careful  planning  as  this  stands  the  test  of  results. 
The  man  who  neglects  to  plan,  but  is  merely  "pushing,"  tears 
his  way  through  great  heaps  of  correspondence,  sends  hurry- 
up  calls,  answers  the  telephone,  rushes  away  to  conference  in 
whatever  sequence  these  tasks  force  themselves  upon  him. 
This  poor  man  is,  as  he  puts  it,  literally  "worked  to  death." 
For  all  that,  because  of  his  defective  system,  he  gets  little 
done;  concentration  is  lost,  perspective  is  lost,  output  cannot 
be  secured. 

A  Survey  of  the  Day's  Work 

The  executive  convinced  that  planning  can  secure  for  him 
an  increased  capacity  next  considers  how  to  put  such  plan- 
ning into  practical  operation.  Here  he  faces  a  problem,  whose 
solution  has  not  yet  been  worked  out  with  completeness.  Fac- 
tory processes,  office  furniture,  the  work  of  subordinate  of- 
ficials and  clerks  and  the  like  have  become  highly  standard- 
ized, but  just  what  is  the  executive's  routine  and  just  what 
methods  should  he  employ?  Any  authoritative  answer  to 
these  questions  depends  upon  records,  analyses,  and  classi- 
fications as  yet  incomplete. 

It  is  safe  to  say,  however,  that  everyone  finds  awaiting 
him  when  he  reaches  his  desk  in  the  morning  material  of  four 
kinds : 

1.  Unfinished  tasks  which  are  on  file  in  the  "pending" 
pocket  of  the  day's  work  file,  or  in  the  folders  of  the 
vertical  letter  file,  or  in  a  desk  drawer  reserved  for 
such  material. 

2.  The  morning  mail  plus  telegrams,  telephone  calls,  or 
other  special  messages  that  have  arrived. 


PLANNING  THE  DAY'S  WORK  m 

3.  The  tickler  or  its  substitute,  such  as  a  calendar  pad, 
a  diary,  or  note-book,  which  contains  memoranda. 

4.  Various  regular  items  whose  recurrence  is  too  com- 
mon a  matter  for  recording  specially. 

The  basis  for  scientific  planning  m  factory  management 
was  obtained  from  a  great  many  experiments  taken  with  stop- 
watch, slide-rule,  etc.  Out  of  the  multitude  of  individual 
records,  generalizations  and  averages  emerged  at  last,  and 
reliable,  convenient  rules  for  general  use  were  formulated. 
The  man  in  an  executive  position  can  do  somewhat  the  same 
thing  with  regard  to  his  own  work. 

The  Elements  of  Planning 

In  surveying  these  various  items  with  the  object  of  weav- 
ing them  into  some  systematic  arrangement  of  his  time,  the 
executive  raises  certain  questions  which  are  basic  in  all 
planning : 

1.  Object.     What  is  my  aim  or  purpose? 

2.  Methods.     Which  of  the  various  methods  available 
best  affect  this  object? 

3.  Equipment.     Under  what  standardized  conditions  as 
to  equipment  are  the  above  methods  most  effective  ? 

4.  Materials.    What  working  materials  do  I  require? 

5.  Sequence.     In  what  order  shall  the  various  items  or 
operations  be  attended  to  or  performed? 

6.  Time.     What  is  the  standard  time,  if  any,  for  com- 
pleting each  step  or  operation  required? 

7.  Inspection.     By  what  standards  will  the  results  be 
tested  ? 

An  intelligent  plan  based  upon  the  information  called  for 
by  these  seven  questions  represents  a  most  important  step 
toward  the  attainment  of  results. 


112  THE  DISPATCH  OF  A  DAY'S  WORK 

The  Waste  of  Unplanned  Work 

The  executive  who  pays  little  or  no  heed  to  the  foregoing 
elements  of  planning  usually  will  be  found  wasting  time  and 
energy  in  ways  such  as  these: 

1.  Needless  shifting  of  employment — stopping  and  start- 
ing. 

2.  Poor  sequence  of  operations,  involving  often  doing 
of  less  important  things  first  and  the  massing  of  im- 
portant tasks  together  regardless  of  the  rhythm  of 
effort  and  thus  wasting  energy. 

3.  Wrong  perspective — proportioning  time  unwisely. 

4.  Wrong  methods  of  approach — or  wrong  strategy  in 
dealing  with  the  various  tasks. 

5.  Packing  the  working  day  too  full — ^no  free  time  for 
emergency  tasks. 

Careful  analysis  reveals  relationships  among  different  ex- 
periences, and  enables  a  man  to  establish  a  few  controlling 
accounts  for  his  expenditure  and  investment  of  effort  and 
time.  By  working  out  a  standardized  procedure  for  the  regu- 
lar case  he  can  save  time  and  strength  for  the  exceptions. 

The  Assistance  of  Systematic  Planning 

Standardized  procedure  cuts  off  the  waste  characteristic 
of  unplanned  work.  More  than  that,  by  its  deliberate  and 
systematic  arrangement  of  the  work,  it  leads  to  positive  re- 
sults : 

I.  It  shows  the  nature,  relation,  and  order  of  importance, 
among  a  series  of  seemingly  individual  items.  It 
classifies  them  into  "constants,"  those  which  recur 
regularly  in  much  the  same  form,  and  "variables," 


PLANNING  THE  DAY'S  WORK 


113 


which   are   not   thus    regular;   and   into   matters   of 
greater  and  of  less  importance. 

(a)  Constants  may  be  handled  in  the  mass  with  a 

minimum  of  effort  and  thus  more  time  is 
left  for  variables. 

(b)  Minor  matters  can  be  subordinated  and  priority 

be  given  to  those  of  larger  importance. 

2.  By  enabling  the  worker  to  foresee  his  various  tasks 
it  enables  him: 

(a)  To  determine  in  advance  the  method  he  will 

use  for  each  task  or  each  group  of  tasks. 

(b)  To  get   ready   for  special   efforts,   to   meet 

special  needs. 

3.  It  gives  the  worker  confidence.  He  knows  that  he 
is  not  wasting  his  strength  and  is  in  no  danger  of 
blocks  on  the  line;  therefore  he  does  not  worry. 

Illustrations  of  Systematic  Planning 

The  whole  matter  of  planning  the  day's  work  is  sim- 
plified by  a  study  of  the  programs  worked  out  by  executives 
of  known  ability.     Some  of  these  are  given  below : 

William  H.  Ingersoll,  whose  mercantile  genius  is  largely 
responsible  for  "the  Watch  that  Made  the  Dollar  Famous," 
arranges  his  work  according  to  a  most  systematic  plan,  using 
both  a  weekly  and  a  daily  program.  The  weekly  program 
is  shown  in  Figure  14. 

With  this  goes  a  daily  program,  shown  in  Figure  15. 
This  form,  which  is  filled  out  at  the  beginning  of  each  day, 
gives  a  complete  outline  of  the  day's  work,  noting  engage- 
ments with  outside  people  and  any  deviation  from  the  set 
weekly  program. 


114 


THE  DISPATCH  OF  A  DAY'S  WORK 


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PLANNING  THE  DAY'S  WORK 


115 


In  the  schedule  shown  in  Figure  14  the  following  letters 
represent — 

C  Staff  of  Home  Office  Bureau  Chiefs 

S  Bureau  of  Sales  Promotion  (salesmen  and  other) 

X  Bureau  of  Experimental  and  Special  Duties 

G  General  Service  Bureau 

DM  Bureau  of  Domestic  Branches  (Co-  and  supervision) 

FM  Bureau  of  Foreign  Branches 

P  Bureau  of  Publicity  and  Advertising 

R  Bureau  of  Export  (direct  markets) 

BM  Bureau  of  Organization  Maintenance  and  Standard  Practice 

T  Bureau  of  Scheme  and  Special  Sales 

The  blank  spaces  represent  time  in  which  the  executive 
works  by  himself  and  the  following  are  the  duties  which  he 
aims  to  cover  in  that  time : 

1.  Plans,  schemes,  producing 

2.  Study  of  reports 

3.  Get  ready  for  conferences  (i.  e.,  assemble  material,  etc.) 

4.  Reading  materials  submitted  to  him  and  minutes  of  previous  con- 

ference meetings 

5.  Reading  clippings  and  articles  of  special  interest 

6.  Problems  in  general  management — constant  subjects 


Some  Typical  Daily  Plans* 

I,     Daily  Program  of  Auditor  for 
Street  Railway  Company 

8:30-  9:00  A.M.    Read  mail  and  give  orders  to  chief  clerk 

and  any  others 
9:00-  9:30    "      Dictate  letters 
9:30-10:00    "      Countersign    any    checks    and    approve 

vouchers  and  bills 
10:00-11:30    "       Open   to   callers    (including   any   clerks) 
and  personal  inspection  of  work  of  the 
general  office 
11:30-12:00    "       Business  with  other  officers 
12  :oo-  1 :30  p.m.    Lunch 

*These  sample  schedules  were  secured  by  Carroll  D.  Murphy  of  System,  who 
also  presents  in  the  sixth  his  suggestions  as  to  what  duties  should  appear  in  the  day's 
work  schedule. 


Il6  THE  DISPATCH  OF  A  DAY'S  WORK 

1 :30-  2  :oo  p.m.    Dictate  letters 

2:00-  3:00  "  Approve  vouchers,  bills,  and  other  docu- 
ments 

3:00-  4:30  "  Open  to  calls  (including  any  clerks)  and 
work  on  any  special  matters 

4:30-  5:15     "       Sign  letters  and  statements 

5:15-  5:30    "       Open 


2.    A  Manufacturer's  Schedule 

8:30  Reading,  sorting,  and  distributing  mail 

9  :oo  Correspondence 

10  :oo  Conferences 

11:00  Planning 

12  :oo  Luncheon 

1 130  General  office,  sales,  and  advertising  proposi- 

tions 

3  :oo  Correspondence 

3 130  to  4:30  Invariably  held  open  for  consideration  of  mat- 
ters not  possible  to  dispose  of  during  the  day 


3.     A  Sales  Manager's  Schedule 

8:00  Reading   and   answering   telegrams;    study   of 

day's  schedule 

8:20  Talk  to  city  salesmen 

8:30  Confer  with  heads  of  departments;  study  re- 

ports and  charts  previous  day's  business 

9:00  Mail  and  correspondence 

1 1 130  Luncheon.   Usually  with  some  out-of-town  cus- 

tomer or  at  some  business  club 

I  :oo  Reading   afternoon   mail.     Write   out-of-town 

salesmen  and  branches 

2:00  Appointments  with  solicitors 

4  :oo  Correspondence 

5  :oo  Signing  correspondence 

5 130  to  6  :oo  Usually  stroll  around  office  and  plant  and  talk 
with  employees,  picking  up  information  as  to 
how  things  are  going. 


PLANNING  THE  DAY'S  WORK 


117 


PROGRAM  OF  THE  DAY 


DUTIES 


APPOINTMENTS 


10 


12 


EVENING: 


Figure  IS-    Schedule  for  JDaily  Work 
This  is  the  schedule  sheet  upon  which  W.  H.  Ingersoll  makes  out  his  day's  work. 


6:30 

7:30 
8:00 
8:30 
9:00 
9:30 
10:00 
12:30 
1:30 
3:00 


4.     A  Bank  Cashier's  Schedule 

Rise 

Breakfast 

Newspapers 

Brisk  walk  for  thirty  minutes 

Look  over  mail 

Take  care  of  correspondence 

Attend  to  business  as  it  comes 

Luncheon 

Regular  business 

Check  the  day's  work 


Il8  THE  DISPATCH  OF  A  DAY'S  WORK 

4:00  Personal  letters 

4 :30  to  5  :oo  A  casual  walk 

6  :oo  Dinner 

Till  ID  :30  Current  news  and  other  reading.  Two  even- 
ings of  the  week  along  banking  lines  and 
two  other  evenings  along  advertising  lines. 


5.     Daily  Working  Plan  of  Manager 
OF  Mail-Order  Sales 

MORNING 

p  to  10:30  o'clock 

Study  sales  received  in  morning  mail,  and  sources  thereof. 
Study  the  sales  total  for  month  so  far,  and  its  relation  to  the 
monthly  sales  quota  established. 

Make  definite  notes  for  further  research,  planning,  and 
sales  effort,  depending  upon  tendencies  indicated  by  status 
of  sales  to  date. 

10:30  to  II  o'clock 

Correspondence. 
//  to  12  o'clock 

Conferences  and  discussions  with  members  of  advertising, 
copy-writing,  and  sales  staff. 

12  to  12:30  o'clock 

Arrange  actual  copy-writing  and  plan  work  for  the  after- 
noon. 

12:30  to  1:15  o'clock — Lunch. 

AFTERNOON 

1:15  to  4:30  o'clock 

Actual  mail  sales  planning.  Close  study  of  various  chan- 
nels of  outlet,  and  particular  copy  appeal  required  on  each 
list  for  each  unit  to  be  sold. 

Assigning  of  copy-writing  work  to  members  of  staff. 

Personal  copy-writing  by  mail-order  manager. 
4:30  to  5  o'clock 

Follow  up  the  regularly  scheduled  mail-order  work  going 
through.  Check  up  with  members  of  staff  as  to  actual  mail- 
ings and  their  routing  through,  according  to  schedule. 


PLANNING  THE  DAY'S  WORK  ng 

6.     Duties  Recommended  for  Schedule 
BY  Carroll  D.  Murphy,  in  "System"' 

(a)  Correspondence 

(b)  Conferences  for: 

(i)   Coaching  men 

(2)  Getting  facts 

(3)  Giving  orders 

(c)  Customers 

(d)  Interruptions 

(e)  "Mixing" 

(f)  Studying  reports,  planning,  and  individual  work — ^block- 

ing out  the  next  move  and  the  proper  policy 

(g)  Reading  and  keeping  in  touch  with  the  trend  of  busi- 

ness 

Preparing  Your  Plan 

Though  valuable  as  suggestions,  the  foregoing  plans 
should  not  be  adopted  unchanged,  as  the  plan  which  works 
most  effectively  for  a  specific  executive  depends  primarily 
upon  an  analysis  of  his  particular  duties.  Such  an  analysis 
involves  the  keeping  of  a  record  for  a  period  of  several  days, 
possibly  weeks,  of  everything  that  is  done  during  the  working 
day.  It  may  be  well  also  to  include  in  this  record  the  things 
which  suggest  themselves  but  which  somehow  are  crowded 
out;  they  oftentimes  represent  choice  opportunities  which 
have  been  neglected. 

A  study  of  these  records  will  soon  reveal  certain  group- 
ings, which  means  that  the  outlines  of  a  day's  work  plan,  are 
beginning  to  emerge.  Needless  to  say  there  will  be  wide 
variety  in  the  results  obtained  by  different  men.  Some  ex- 
ecutives have  merely  an  ordinary  round  of  activities;  with 
others  it  may  seem  at  first  that  the  only  regular  feature  of 
their  work  is  its  irregularity.  But  in  any  case  it  will  be 
profitable  to  raise  a  few  definite  questions  in  regard  to  the 
day's  work — to  run  a  few  "levels"  as  a  surveyor  does  in  lay- 
ing out  a  street. 


I20  THE  DISPATCH  OF  A  DAY'S  WORK 

Classifying  Your  Work 

The  first  and  most  important  question  to  apply  is  that  of 
the  kind  of  activity  involved  in  each  kind  of  task  which  enters 
your  regular  day — whether  it  appears  as  a  constant  item  or 
merely  comes  once  in  a  while.    That  activity  may  consist  of : 

1.  Personal  study,  or  formation  of  opinion.  This  may 
be  done  either: 

(a)  Through  thinking  things  out  for  oneself. 

(b)  Through  examination  of  data  which  have  been 

collected  for  the  executive. 

2.  Inspecting  work  of  others.    This  may  include: 

(a)  Routine  O  K'ing  of  pieces  of  work  presented 

by  subordinates. 

(b)  Supervising    subordinates,    examining    equip- 

ment, etc. 

(c)  Remedying  trouble. 

(d)  Inspection  work  outside  the  office. 

3.  Consultation.     This  may  include : 

(a)  Reporting  to  superiors. 

(b)  Explaining  "the  law"  to  subordinates. 

(c)  General    discussion    of    points    of    policy    or 

methods. 

(d)  Argument  regarding  the  adoption  of  a  par- 

ticular plan. 

A  second  question  is  that  of  an  executive's  relation  to  a 
given  piece  of  work  or  to  any  part  of  it.  His  function  may 
be  that  of: 

1.  Originating  the  idea;  visualizing  it  and  explaining 
or  "selling"  it  to  his  associates. 

2.  Developing  or  promoting  an  idea  by  someone  else; 
what  is  required  on  his  part  is  loyal  and  sympathetic 
elaboration  of  people's  plans. 


PLANNING  THE  DAY'S  WORK  I2i 

3.  Reviewing,  checking,  testing;  what  is  required  of  him 
is  to  see  that  specifications  have  been  properly  com- 
pHed  with. 

Thinking  over  the  various  groups  of  tasks  which  the  record 
shows  enter  his  working  day  will  enable  a  person  to  decide 
pretty  definitely  regarding  each  group: 

1.  Whether  it  should  be  given  a  regular  place  in  his 
daily  schedule  or  may  be  disposed  of  in  one  of  his 
"free"  periods. 

2.  Whether  it  must  be  taken  up  according  to  the  con- 
venience of  other  persons. 

3.  Whether  it  requires  fresh  energy,  or  may  be  handled 
on  "exhaust  steam." 

4.  What  is  required  in  the  way  of  office  conditions  and 
conveniences?  Is  it  seriously  affected  by  noise,  by  a 
crowded  office,  etc.? 

The  effort  to  apply  the  above  questions,  or  similar  ques- 
tions devised  for  yourself,  will  reveal  to  you  perhaps  things 
you  have  not  realized  regarding  the  character  and  relation- 
ships of  the  tasks  which  make  up  your  regular  working  day. 

Applying  the  Analysis  in  a  Definite  Plan 

The  next  thing,  which  at  first  thought  may  appear  much 
more  difficult,  is  to  rearrange  the  working  time  so  far  as 
possible  to  fit  more  perfectly  with  the  tasks  to  be  done.  Very 
likely  the  reader  will  say  at  once:  "This  is  impossible.  Defi- 
nite plans  do  very  well  for  the  president  or  general  manager, 
but  not  for  the  subordinate.  My  own  position  involves  con- 
tinual adaptation  to  the  calls  of  other  persons — superiors — 
subordinates — outsiders.  My  duty  is  to  be  ready  for  any  duty. 
I  could  not  hold  to  a  plan  through  a  single  day.  I  may  plan, 
in  a  sense,  for  a  month  or  a  week — that  is,  outline  the  work 


122  THE  DISPATCH  OF  A  DAY'S  WORK 

to  be  covered  and  in  general  the  order  to  be  followed,  but  no 
more!" 

To  those  who  know  the  history  of  planning  as  applied  to 
the  factory  these  remarks  have  a  strangely  familiar  sound. 
In  reply  it  may  be  said  that  even  if  your  time  is  wholly  "at 
call"  you  can  determine  to  a  considerable  extent  to  which 
calls  you  will  give  priority,  both  in  order  of  attention  and 
in  the  amount  of  time  allowed.  The  difference  in  effective- 
ness, in  the  amount  of  accomplishment  by  different  execu- 
tives, turns  largely  on  this.  The  junior  executive  may  be 
swept  on  by  the  current,  but  even  he  can  to  a  large  degree 
lessen  or  increase  the  expenditure  of  time  and  effort  it  in- 
volves. 

Moreover,  one  can  plan  how  to  meet  different  sorts  of 
calls.  The  "trouble  man"  of  the  telephone  company,  for  in- 
stance, cannot  plan  in  advance  where  he  will  be  needed,  but 
he  can  prepare  definite  means  for  dealing  with  the  various 
types  of  emergencies  which  occur.  And  after  all  the  "trouble 
men"  in  any  business  which  is  really  well  organized  are  few. 
Every  executive  has  at  his  own  disposal  a  much  larger  pro- 
portion of  his  working  day  than  he  is  apt  to  think — providing 
he  has  learned  to  utilize  the  odd  minutes. 

Study  of  time  is  as  illuminating  and  useful  as  study  of 
pnysical  layout.  Nearly  every  man  will  find,  on  making  such 
an  analysis  as  has  been  suggested  above,  that  he  is  wasting 
some  of  his  free  hours,  or  half-hours,  upon  duties  which 
could  be  perfectly  well  disposed  of  at  odd  times.  Few  of  us 
utilize  the  ten-minute  or  five-minute  intervals  which  come 
to  even  the  busiest  "trouble  man."  Yet  there  are  only  42 
ten-minute  intervals  in  the  seven  hours  of  the  working  day. 
Mr.  Vanderlip,  so  The  American  Magazine  for  January,  19 18, 
relates,  makes  much  use  of  two-minute  interviews.  It  is 
decidedly  worth  while  to  make  an  analysis  and  draw  up  a 
plan — even  if  the  plan  must  be  scrapped  the  first  day.     The 


PLANNING  THE  DAY'S  WORK 


123 


attempt  at  a  more  orderly  distribution  of  his  time  is  an  ad- 
venture in  which  a  man  cannot  lose;  he  is  certain  to  gain  in 
what  is  most  important,  namely  in  clarifying  his  own  mind  as 
to  the  nature,  relationship,  and  comparative  importance  of  the 
tasks  with  which  he  has  to  deal.  Once  having  taken  such  a 
trial  balance  of  his  individual  duties  and  resources  he  knows 
better  what  to  do  with  almost  every  task  which  presents  itself. 
Then,  when  exceptional  new  items  appear,  he  has  the  time 
to  spare  if  they  seem  to  require  it. 

A  Trouble  Man's  Daily  Program 

To  indicate  the  reasonableness  of  the  planning  which  has 
been  described,  we  may  cite  here  the  manner  in  which  the 
industrial  engineer  connected  with  a  large  manufacturing 
plant  has  organized  his  day. 

This  man  is  the  trouble  man  for  the  entire  organization. 
Any  department  head  who  has  difficulty  in  his  relations  with 
any  other  department  in  regard  to  securing  data,  reports,  or 
co-operation,  calls  upon  him  to  devise  schemes  for  over- 
coming such  trouble.  He  has  assisting  him  a  staff  of  experts 
who  are  given  assignments  from  time  to  time  working  up  the 
details  of  these  schemes.  Thus  this  man's  time  is  never  his 
own  and  he  must  always  be  and  is  available  to  such  demands 
as  are  made  of  him. 

He  has  discovered,  however,  that  his  daily  schedule  can 
be  laid  out  much  more  regularly  than  might  be  supposed. 
The  time  of  the  various  executives  of  the  organization,  whose 
convenience  he  must  meet,  is  itself  arranged  in  a  varying 
order  of  routine  and  extra  work.  Through  careful  study  of 
their  time-tables  he  has  made  one  for  himself  which  is  sur- 
prisingly regular. 

Arriving  at  eight  o'clock  in  the  morning,  he  spends  fifteen 
minutes  in  setting-up  exercises  under  the  directions  of  an  in- 
structor.   All  the  office  executives  take  this  practice  as  a  means 


124 


THE  DISPATCH  OF  A  DAY'S  WORK 


of  Invigorating  themselves  for  the  day's  work.  The  next 
fifteen  minutes  are  spent  looking  over  any  mail  which  has 
come  in  the  first  morning's  delivery  and  dictating  answers  to 
letters,  etc.,  which  require  attention.  The  majority  of  calls 
which  are  planned  in  advance  are  received  by  phone,  and  on 
the  whole,  the  work  of  the  day  can  be  scheduled  at  this  time. 

At  8  :^o  the  various  superintendents  bring  in  their  troubles 
for  a  routine  conference  and  adjustment,  the  industrial  en- 
gineer acting  as  the  referee.  At  nine  o'clock  is  held  the 
daily  staff  conference  of  his  subordinates.  Each  of  these 
makes  daily  reports  of  what  he  proposes  to  do  in  laying  out 
the  schemes  of  adjustment. 

10:30  to  II  is  set  aside  for  appointments  in  which  the 
factory  executives  or  department  heads  are  given  the  prefer- 
ence. The  last  forty-five  minutes  of  the  morning  are  given 
to  appointments,  looking  over  the  correspondence  waiting 
for  signature,  or  incoming  mail.  Lunch  takes  the  time  until 
1 115.  The  next  fifteen  minutes  is  spent  in  looking  over  any 
calls  which  may  have  come  in  and  scheduling  the  afternoon's 
work  and  preparing  for  the  daily  half -hour  conference  with 
the  general  manager,  which  is  from  1 130  to  2  o'clock.  At 
this  time,  all  matters  which  will  have  any  effect  upon  the 
company's  policies  are  discussed  with  the  engineer's  superior 
with  an  idea  of  getting  final  rulings.  From  2  to  3  is  set  aside 
for  conference  with  subordinates  covering  their  assignments. 
The  rest  of  the  afternoon  is  open  for  handling  all  special 
matters  requiring  attention.  For  instance,  the  first  fifteen 
minutes  are  spent  in  field  inspection  of  the  new  stores  system. 
Next,  the  machine  layout  in  the  new  foundry  building  is  in- 
spected for  the  output  of  a  new  line  of  goods.  Half  an  hour 
is  taken  for  discussion  of  the  plans  for  production  of  new  lines 
of  hardware. 

The  last  hour  and  a  half,  or  until  5  130,  is  open  for  ap- 
pointments, conferences,  other  inspections,  signing  the  after- 


PLANNING  THE  DAY'S  WORK  1 25 

noon's  mail,  and  handling  any  other  routine  matters.  When 
he  goes  home  for  the  evening  he  sorts  uncompleted  work 
for  the  attention  of  his  subordinates  in  the  morning,  if  it 
can  be  handled  by  them,  or  for  delay  until  a  still  later  period. 
After  that,  all  this  executive's  time  is  taken  up  for  these  spe- 
cial calls  and  requirements.  Certain  periods  are  set  aside 
for  the  calls  of  the  specific  kinds  of  executives  such  as  super- 
intendents, department  heads,  managers,  and  so  on,  and  the 
important  engagements  come  first  in  the  morning  so  that  the 
detail  work  on  them  may  be  completed  during  the  rest  of  the 
day. 

If  this  man's  work  can  be  planned,  who  shall  say  that 
his  own  case  is  hopeless? 

Better  Results  from  Planning 

The  user  of  daily  plans  soon  comes  to  recognize  in  them 
the  antidote  to  efficiency's  great  enemy,  aimlessness. 

"Our  energies  may  be  wasted  and  our  genius  misdirected," 
says  John  V.  Farwell,  founder  of  the  John  V.  Farwell  Com- 
pany, "unless  we  can  guide  them  to  definite  ends;  unless  we 
can  use  our  forces  to  get  specific  results." 

The  man  who  plans  the  day's  work  does  not  aimlessly 
wonder  what  to  do  next.  He  knows,  and  knows  with  definite- 
ness,  and  his  efforts  are  directed  incessantly  toward  specific 
attainment. 

Nevertheless,  in  common  with  most  things  really  worth 
while,  plans  require  a  certain  discrimination  both  in  their  pre- 
paration and  in  their  use. 

The  following  plan  prepared  by  a  manufacturer  shows  a 
curious  lack  of  such  discrimination.  The  factory  hours  here 
were  from  8  to  12  and  12  45  to  5,  and  the  president's  personal 
schedule  was  found  to  read  as  follows: 

8:00-  9:00    Looking  over  mail 

9  :oo-io  :oo     Dictation  of  correspondence 


126  THE  DISPATCH  OF  A  DAY'S  WORK 

10:00-11:00  Conference  with  sales  rnanager 

11:00-12:00  Conference  with  foremen 

12  :oo-  I  :oo  Luncheon 

I  :oo-  2  :oo  Correspondence 

2:00-  3:00  Planning 

3:00-  4:00  Conferences  and  miscellaneous 

4  :oo-  5  :oo  Plant  inspection 

This  manufacturer  had  in  his  employ  as  sales  manager  an 
unusually  competent  man,  but  acted  as  his  own  works  man- 
ager. Yet  he  spent  the  first  two  hours  of  the  morning  over 
his  mail  and  correspondence,  much  of  which  pertained  to  the 
sales  department  and  could  profitably  have  been  referred  there 
directly,  and  a  third  hour  with  a  man  who  needed  little  atten- 
tion, while  affairs  in  the  shops  were  scheduled  to  wait  for 
attention  until  eleven  o'clock.  Again  in  the  afternoon  when 
he  might  well  have  been  inspecting  the  shops  or  conferring 
with  foremen,  he  scheduled  another  hour  for  correspondence. 

His  tasks,  no  doubt,  were  all  worth  doing,  but  he  did  not 
put  first  things  first. 

"To  every  thing  there  is  a  season  and  a  time  to  every  pur- 
pose under  the  heaven." 

How  Much  Time  Is  This  Task  Worth? 

In  planning,  give  each  task  the  time  it  is  worth. 

If  trifles  have  been  eating  up  one's  time  the  plan  will  show 
it.  The  odds  and  ends  left  hanging  over  when  the  time  limits 
are  reached  prove  not  that  a  more  generous  allowance  should 
be  made — the  tasks  are  not  worth  it — but  that  routine  work 
must  be  speeded  up. 

In  delegating  certain  items  and  compressing  others 
through  short-cuts,  the  executive  exercises  constantly  his  sense 
of  relative  values.  It  is  here  that  the  ability  of  men  such  as 
Hugh  Chalmers  shows  itself.  Mr.  Chalmers  when  he  reaches 
his  desk  each  morning  has  before  him  a  list  of  the  "Ten  Most 
Important  Things  To  Do  Today."     This  list  means  that  its 


PLANNING  THE  DAY'S  WORK 


127 


maker  is  a  man  of  discrimination,  that  he  possesses  perspec- 
tive. It  may  be  worth  while  adding  that  Mr.  Chalmers,  the 
founder  of  the  Chalmers  Motor  Car  Company,  once  entered 
the  National  Cash  Register  Company  in  a  very  minor  position, 
but  was  advanced  by  President  Patterson  until  he  drew  an- 
nually a  salary  of  $72,0(X). 

It  is  worthy  of  note  here  that  this  habit  of  concentrating 
upon  the  more  vital  matters  is  characteristic  of  most  of  our 
successful  executives.  It  largely  accounts  for  the  fact  that 
they  are   successful  executives. 

It  is  important  to  keep  a  proper  prospective,  to  recognize 
the  essentials. 

Why  Write  Out  the  Plan? 

The  plan  is  the  product  of  hard  thinking,  and  hard  think- 
ing should  not  be  done  twice.  Its  first  results  must  be  pre- 
served and  utilized  and  this  becomes  feasible  only  when  they 
are  recorded. 

"Five  years  of  planned,  attained,  and  recorded  progress," 
says  Harrington  Emerson,  "will  accomplish  more  than  twenty 
years  of  rule-of-thumb  tucked  away  under  the  hats  of  shifting 
employees.",  The  record,  Mr.  Emerson  points  out,  is  a  ratchet, 
which  holds  on  to  every  gain  made  and  allows  no  slips  back- 
ward. Time-tables,  blue-prints,  office  manuals,  rule  books, 
purchasing  specifications,  chemical  formulae,  geodetic  maps, 
legal  codes,  what  are  all  these  but  rachets  for  past  thoughts 
and  guides  to  present  effort? 

Moreover,  the  writing  down  of  the  plan  increases  the  like- 
lihood that  it  will  be  carried  out  successfully.  If  his  routine 
plan  is  always  at  hand  in  the  form,  say,  of  a  printed  memo, 
a  man  has  a  regular  time-table  to  which  he  will  keep  try- 
ing more  or  less  consciously  to  accommodate  the  tasks  of 
the  individual  day.     In  Chapter  IV  the  day's  work  file  was 


128  THE  DISPATCH   OF  A  DAY'S  WORK 

described.     The  arrangement  of  this  file,  the  headings  of  the 
folders,  cards,  etc.,  should  be  those  of  the  routine  plan. 

How  Far  Ahead  to  Plan 

While  the  schedules  which  have  been  shown  refer  in  the 
main  to  one  day's  activities  only,  it  is  equally  certain  that 
written  instructions  with  time  limits  may  cover  months  and 
years.  The  question  accordingly  is  pertinent,  How  far  ahead 
shall  the  business  man  plan  his  tasks? 

It  is  evident  from  a  study  of  his  schedule  shown  on  page 
115,  that  William  H.  Ingersoll  believes  daily,  weekly,  and 
monthly  planning  to  be  practicable. 

It  is  well  to  note,  however,  from  a  study  of  this  schedule 
sheet,  Mr.  Ingersoll' s  recognition  of  the  fact  that  the  more 
remote  the  task  the  less  detailed  and  rigid  may  be  its  written 
directions  and  time  limits.  Today's  schedule  may  be  specific 
in  its  statement  of  tasks  and  allotments  of  time,  but  who  can 
now  be  perfectly  definite  about  a  plan  for  next  month,  or  next 
year  ? 

"Unhappy  the  general,"  declared  Napoleon,  "who  comes 
on  the  field  of  battle  with  a  system." 

"When  I  have  tried  to  plan  out  ahead,  some  duty  pre- 
viously unforeseen  has  upset  everything,"  observed  William 
T.  Stead,  late  editor  of  the  English  Review  of  Reviews. 
"Speaking  only  for  myself  and  on  the  strength  of  my  own 
personal  experiences,  I  should  say  that  I  have  come  to  believe 
that  the  best  way  to  get  the  best  results  out  of  yourself  for 
the  benefit  of  the  world  is  to  frame  your  schemes  as  wisely 
and  as  carefully  as  you  can  with  all  the  information  and 
counsel  you  can  command  today,  but  never  to  cling  to  them 
tomorrow  if  you  should  be  confronted  by  some  plain,  un- 
avoidable duty  which  speaks  to  you  with  the  imperious  au- 
thority of  a  divine  call." 


I 


PLANNING  THE  DAY'S  WORK 


129 


What  Mr.  Stead  rightly  insists  upon  here  is  sufficient 
flexibihty  in  plans  so  that  first  things  may  be  put  first. 

Making  the  Plan  Fit  Your  Needs 

When  it  comes  to  putting  into  practice  this  prmciple  of 
first  things  first,  much  will  depend  upon  the  nature  of  the  posi- 
tion held.  As  a  rule,  the  executive  owing  to  the  way  he  func- 
tions within  the  organization  must  to  a  certain  extent  always 
hold  himself  in  readiness,  perhaps  to  initiate  a  policy  required 
by  certain  changed  conditions  or  to  sweep  down  upon  some 
spot  where  a  tangle  has  developed. 

"I  handle  things  as  they  come,"  says  W.  A.  Field  of  the 
Illinois  Steel  Company;  "I  am  simply  one  cog  in  a  big  ma- 
chine. If  I  am  the  cog  that  should  finish  a  particular  piece 
of  work,  I  finish  it  at  once.  If  I  am  expected  simply  to  give 
it  a  turn  and  pass  it  on  to  some  one  else,  perhaps  higher  up,  I 
do  that  just  as  promptly." 

In  positions  which  involve  unexpected  and  emergency  du- 
ties in  large  proportion,  the  day's  plan  must  be  kept  flexible. 
The  hard  and  fast  time-table  sort,  with  its  numerous  and  nar- 
row time  limits,  would  be  apt  to  hinder  more  than  help.  In 
order  to  work  best  here  perhaps  the  plan  ought  to  be  shorn 
of  its  time  limits  entirely  and  become  merely  an  order  of  busi- 
ness.     (See  Figure  16.) 

The  Matter  of  Personality 

The  personality  of  the  man  as  well  as  the  nature  of  his 
duties  calls  for  consideration  when  the  plans  are  prepared. 

Some  men  are  like  sturdy  machines,  able  to  attack  any  task 
at  any  time,  but  more  of  us  have  our  fluctuations  in  working 
power — moods,  "off  days,"  tired  hours,  and  best  parts  of  the 
day.  Everyone  is  freshest  in  the  early  morning,  but  some 
men  are  slow  starters,  and  do  their  best  work  toward  the 
middle  of  the  day.     The  plan  should  take  such  things  Into 


I30 


THE  DISPATCH   OF  A  DAY'S  WORK 


1.  Attend  to  mail 

2.  Dictate 

3.  Decide  Thompson  contract 

4.  Decide  Van  North  extension 

5.  Take  up  behing  contracts 

6.  Conferences 

7.  Plant  inspection 

8.  Office  routine 

q.  Tomorrow's  work 


Figure  16.  A  General  Manager's  Daily  Order  of  Business 
A  general  manager  draws  up  daily  what  he  calls  his  order  of 
business.     This  is  written  on  a  small  card  and  kept  on  his  desk. 

consideration.  Those  who  must  work  for  a  time  before  get- 
ting "warmed  ug"  may  begin  on  the  morning  mail,  perhaps, 
and  schedule  no  important  things  before  ten  or  immediately 
after  luncheon.  The  halves  of  the  half-day  periods,  more- 
over, affect  men  differently.  Some  work  better  just  after 
eating,  others  do  not.  The  man  who  tires  quickly  should  do 
his  creative  work  in  his  fresh  hours,  whenever  they  may  be, 
and  use  his  fatigue  hours  for  "hack  work." 

When  to  Prepare  the  Plan 

With  respect  to  the  most  feasible  time  for  preparing  the 
day's  plan,  Carroll  D.  Murphy  submitted  a  questionnaire  to 
two  hundred  and  fifty  business  men  and  found  that  thirty-eight 
per  cent  preferred  to  prepare  it  in  the  morning,  usually  before 
opening  the  mail.  Thirty  per  cent  chose  to  plan  their  work 
the  night  before,  so  as  to  have  clearly  in  mind  what  they  must 
deal  with  the  next  day.     On  the  whole,  perhaps,  the  best  re- 


PLANNING  THE  DAY'S  WORK 


131 


suits  come  through  getting  a  general  idea  of  tomorrow's  work 
before  quitting  the  oflfice  but  leaving  all  definite  plans  to  be 
drawn  up  the  next  morning. 

Wide  Applicability  of  Planning. 

The    foregoing    discussion    of    the    means    for    securing 
greater  effectiveness  from  planning  should  not  obscure  in  any 
way  the  simple  main  principle,  that  plans  are  of  wide  applica- 
bility and  will  secure  for  a  man  greatly  increased  results. 
The  planner  in  business 
— sets  for  himself  a  central  purpose; 
— analyzes  this  general  purpose  into  its  various  ramifica- 
tions, such  as  methods,  equipment  and  materials; 
— ^prepares  definite  plans,  with  written  instructions;  and 
— devises  standard  tests  with  which  to  check  his  progress. 
Under  such  systematic  treatment,  the  most  troublesome 
day's  work  is  handled  with  comparative  ease. 


Exercises 

Is  Planning  Practicable? 

You  may  be  one  of  those  men  hard  to  convince  that  planning  is 
practicable.  "Of  course,"  you  admit,  "it  is  perhaps  all  right  for 
theorists,  but  it  will  not  apply  to  my  case."     Let  us  see. 

Not  long  since  you  carried  out  some  special  project — built  a  house, 
managed  a  picnic,  handled  a  sales  convention,  ordered  some  ma- 
chinery, bought  some  merchandise,  or  what  not.  Use  Test  Chart  6 
for  the  purpose  of  investigation  in  the  case  of  this  particular  project. 

"If  only  I  could  do  that  over  again  !"  is  something  we  hear  fre- 
quently reiterated;  it  is  the  wail  of  Hindsight.  Its  real  antidote  is 
Foresight. 

Note  especially  those  last  two  columns.  Of  the  various  reduc- 
tions in  money  and  time  which  you  now  see  might  have  been  made, 
how  much  would  have  been  made  had  you  taken  the  trouble  to  draw 
up  an  intelligent  plan  in  advance?  Write  your  estimate  in  the 
proper  place. 

Look  at  the  figures.     Is  planning  practical? 


132 


THE  DISPATCH  OF  A  DAY'S  WORK 


Planning  for  Others 

As  an  executive,  your  success  is  measured  not  by  what  you  do 
but  by  what  you  get  done,  which  is  merely  another  way  of  saying 
that  you  should  plan  work  for  your  subordinates.  Shops  working 
under  scientific  management  do  not  rest  content  with  designing  and 


Things  I  Did  in  the 

Order  They  Were 

Done 

Wastes  Encoun- 
tered 

These      Wastes 
Might  Have  Been 
Reduced  by 

Money 

Time 

Dollars 

Hours  and 
Minutes 

Total   Value  of 
Planning   (Esti- 
mate) 

) 

Test  Chart  6.     My  Experience  with 

(Fill  in  name  of  project) 

drafting  departments,  which  show  what  is  to  be  done;  they  install 
planning  departments,  which  direct  how  it  is  to  be  done  and  when 
it  is  to  be  done. 

Fruitful  opportunities  to  plan  work  face  every  executive  every 
day. 

Are  shop  conferences  and  salesmen's  conferences  in  your  organ- 
ization mere  rambling  discussions,  the  consensus  of  opinion  being 
"We  don't  get  anywhere"?  Do  your  assistants  waste  time  after  they 
have  finished  one  task,  awaiting  your  directions  as  to  what  to  do 
next?  If  you  are  obliged  to  be  gone  for  a  few  days,  do  things  prac- 
tically come  to  a  stand-still  ?    Planning  will  remedy  these  evils. 

Planning  in  Daily  Life 

Planning  will  also  bring  order  and  system  into  the  details  of  life. 
In  getting  ready  for  a  motor  car  trip,  do  you  wear  a  path  between 


PLANNING  THE   DAY'S  WORK 


133 


house  and  car,  repeatedly  peering  about  here  and  there  to  see  that 
everything  is  in  readiness,  only  to  discover  later  on  that  you  are  with- 
out the  tire  repair  kit,  the  rain  curtain,  and  the  carbide? 

The  next  time  you  make  a  trip,  draw  a  sheet  of  note  paper  from 
your  pocket,  jot  down  a  list  of  the  things  to  do,  check  this  list  before 
you  start. 

When  your  wife  asks  you  to  make  four  purchases  for  her  in  the 
city,  do  you  lose  dollars  in  valuable  time  in  walking  back  and  forth 
from  store  to  store,  finally  coming  home  elated  with  two  supposedly 
satisfactory  articles  and  the  other  two  entirely  forgotten? 


Questions 

My  Present 
Practice  Is — 

My  Suggestions  for 
Improvements  Are — 

Do  I  push  my  work  or 
does  it  push  me?. . . 

When  is  the  most  fea- 
sible time  for  me  to 
plan  ?   

Do  I   get  the   benefits 
which  come  from  the 
writing  of  plans?. . . 

Are  my  various  tasks 
taken     up     in     their 

proper   sequence?... 

Is    each    task    allowed 
the  full  time,  but  no 
more,  of  its  worth?. 

How  far  ahead  should 
I  plan? 

Are    my    daily    plans 
suited  to  the  volume 
of  my  business?.  . . . 

Are  these  plans  suited 

to   my  own   person- 
ality ? 

Test  Chart  7.    Planning  My  Work 


134  THE  DISPATCH  OF  A  DAY'S  WORK 

It  would  be  much  easier  and  quicker  to  obtain  specific  directions  to 
start  with,  and  call  upon  the  stores  in  order,  checking  each  article  as 
purchased.  Carrying  the  analysis  a  step  farther,  it  may  be  that  your 
wife  should  have  planned  for  all  these  purchases  weeks  ago  herself. 

In  short,  opportunities  for  planning  are  practically  identical  with 
things  to  do;  they  face  you  at  every  turn. 

Are  you  in  earnest?     Seize  this  very  minute: 
What  you  can  do,  or  dream  you  can,  begin  it. 

This  very  excellent  sentiment  you  will  put  into  specific  terms  by 
filling  out  Test  Chart  7  now;  theory  and  practice  go  hand  in  hand. 


■< 


CHAPTER  VIII 

DOING  THE  DAY'S  WORK 

Every  one  of  us  is  conscious  of  a  satisfaction  in  doing  his 
work  handily  and  well,  in  seeing  the  product  grow  under  his 
own  hands. — Frank  W.  Taussig,  Harvard  University. 

Putting  the  Plan  Through 

A  genius  for  dispatching  work,  for  getting  through  it 
in  the  shortest  time  possible,  is  essential  in  any  great  execu- 
tive. It  does  not  suffice  that  he  plan ;  he  must  also  carry  out 
his  plans.  The  plan  stands  behind  the  power  of  dispatch 
as  its  indispensable  foundation,  but  from  the  pyramid  builders 
of  Egypt  to  the  corporation  officials  of  today,  the  doers  of  the 
world's  work  are  measured  by  the  amount  accomplished;  re- 
sults constitute  their  real  test. 

The  executive,  his  plans  matured,  must  put  them  through. 
Concentration,  decision,  dispatch!  These  are  the  watch- 
words of  modern  business. 

Marvelous  System  of  Dispatching 

The  highest  order  of  dispatching  has  been  attained  by  the 
railroads,  whose  methods  are  thus  described  by  Harrington 
Emerson : 

In  railroad  operation  marvelous  dispatching  has  been  at- 
tained, more  accurate  than  the  seasons,  more  reliable  than 
the  tides,  almost  equal  to  the  star  time  on  which  it  is  based. 
Lines  of  track  nearly  a  thousand  miles  long  stretch  between 
New  York  and  Chicago.  Every  switch,  every  grade,  every 
curve,  is  known;  the  line  is  studded  with  signal  towers  and 
punctuated  with  stations. 

In  the  round  house  is  a  locomotive  with  a  boiler  capable  of 


136  THE  DISPATCH  OF  A  DAY'S  WORK 

carrying  225-pounds  steam  pressure,  which  through  the 
cylinders  and  pistons  pushes  on  the  wheels  with  rims  polished 
like  glass.  The  rims  transmit  400  horse  power  through  a 
quarter-inch  square  of  contact  with  a  glass-smooth  rail. 
With  one  load  of  coal,  drinking  from  tanks  as  it  runs,  the 
locomotive  is  able  to  speed  140  miles  at  the  rate  of  60  miles 
an  hour.  The  seventy-two  to  eighty-four  wheel  axles  under 
the  train  must  each  run  true  in  its  box,  everything  in  track 
and  equipment,  in  men,  and  above  all  in  spirit,  must  be  in 
perfect  order  all  the  time. 

On  the  basis  of  these  conditions  a  schedule  is  made  out,  a 
schedule  of  running  time,  with  due  allowance  for  grades  and 
curves  and  stations,  an  18-hour  schedule  from  New  York  to 
Chicago.     The  train  is  then  dispatched. 

The  dispatchers  issue  orders  to  the  conductor  and  to  the 
block-signal  men,  thus  controlling  the  train  from  both  ends. 
While  under  the  orders  of  the  conductor,  while  physically 
under  the  control  of  the  engineer,  it  is  the  dispatcher  who 
from  start  to  finish  holds  it  in  the  hollow  of  his  hand. 

The  task  here  is  one  of  accomplishment,  carrying  out  the 
official  plan,  getting  the  train  through  on  schedule  whatever 
happens,  every  day  in  the  year.  It  is  not  enough  that  sched- 
ule and  arrangements  have  been  made  out  with  minutest 
care;  the  dispatchers  must  see  that  the  thousands  of  pieces 
of  their  huge  machine  function  exactly  every  day — cars,  en- 
gines, and  track,  and  men. 

Human  Traits  of  the  Long  Ago 

Nevertheless,  the  dispatching  efficiency  even  of  railroads, 
according  to  Mr.  Emerson's  estimate,  is  not  over  forty  per 
cent  and  most  organizations  in  this  respect  fall  far  short  of 
the  railroads.  The  prompt  and  accurate  co-operation  which 
an  organization  seeks  from  the  members  of  its  staff  is  not 
always  forthcoming.  The  average  executive  fails  oftener 
than  he  likes  to  think  of  to  get  his  own  daily  program  through 
on  schedule  time — especially  if  he  makes  the  needed  stops 
for  "passengers."    Why  is  this? 

A  traveler   in  Australia  once  engaged   three  natives  to 


DOING  THE  DAY'S  WORK 


137 


serve  as  guides  into  the  interior,  the  time  set  for  departure 
being  early  the  following  morning.  Not  a  native  appeared  at 
the  appointed  time,  nor  during  the  entire  day.  The  traveler, 
unable  to  account  for  this,  began  to  suspect  foul  play,  espe- 
cially when  the  second  day  wore  along  to  noon  with  no  sight 
of  a  native.  About  three  o'clock,  however,  the  Bushmen 
appeared,  friendly  as  ever  and  ready  to  begin  the  journey. 
The  amusing  fact  was  that  they  failed  entirely  to  comprehend 
the  traveler's  displeasure  at  their  previous  non-appearance. 
"Why,"  they  said,  "this  is  only  the  second  day!" 

Inefficiency  Still  With  Us 

Irresponsible  ways,  neglect  of  the  necessary  steps  in  carry- 
ing through  the  things  we  mean  to  do,  are  deep  rooted  in  us 
all.  In  the  long  ages  during  which  the  ground  patterns  of 
human  interests  were  fixed  our  ancestors  led  the  simple  life 
with  responsibilities  scarcely  more  exacting  than  the  animals 
they  hunted.  Today  a  man  is  chosen  and  retained  in  an  execu- 
tive position  largely  because  his  associates — above,  around, 
and  below — have  confidence  in  his  power  of  carrying  respon- 
sibilities, of  getting  his  train  through.  But  he  himself  knows 
only  too  well  how  exacting  is  this  test. 

Opponents  the  Systematic  Worker  Must  Overcome 

When  the  business  man  seats  himself  at  the  desk  with 
today's  plan  facing  him  and  the  hour  has  come  for  concentra- 
tion, decision,  and  dispatch,  his  progress  is  persistently  threat- 
ened by  hindrances — the  seven  devils  of  obstruction  we  might 
call  them : 

Procrastination 
The  big  dreamy  idea 
Things  forgotten 
Yesterday' «  loose  ends 


138  THE  DISPATCH  OF  A  DAY'S  WORK 

Dilatory  co-operatiorl 

Interruptions  by  associates  and  callers 

Round  about  methods 

Beset  by  these  insidious  foes,  the  expectations  of  the 
morning  dwindle  gradually  as  the  day  wears  on  until  the 
realization  becomes  painfully  clear  that  he  is  again  falling  far 
short  of  his  maximum.  How  best  clear  the  way  of  these 
seven  devils  of  obstruction  so  that  a  man  may  dispatch  his 
tasks  with  zest? 

The  Procrastinator 

*'Getting  things  done,"  says  George  Matthew  Adam,  "is  a 
matter  of  first  getting  things  started." 

The  procrastinator — and  there  are  traces  of  him  in  nearly 
every  one  of  us — is  loath  to  start.  He  surveys  his  problem, 
touches  it  timidly  here  and  there,  then  leaning  back  in  his 
office  chair  gazes  absently  out  of  the  window  and  soon  is  lost 
in  antibusiness  reveries.  Upon  returning  from  these  mind 
wanderings,  he  continually  salves  his  conscience  with  such 
enervating  excuses  as :  "I  don't  feel  very  good  this  morning," 
"I'm  not  paid  to  do  this,"  or  "I  couldn't  more  than  get  started 
until  someone  would  interrupt  me  anyway." 

After  a  time  the  procrastinator  may  get  started,  but  in  a 
half-hearted  way.  With  everything  going  smoothly,  he  may 
dispatch  a  fair  day's  work,  but  the  first  hard  decision,  the 
first  tangle,  is  his  mental  Waterloo.  With  neither  definite 
goal  nor  strong  motive  force,  he  spends  the  hours  in  partially 
solving  many  problems,  at  the  end  postponing  their  full 
accomplishment  till  tomorrow.  Tomorrow  he  repeats  the 
dilatory  tactics  of  today. 

The  man  in  an  executive  position  who  procrastinates 
habitually  will  not  advance  far,  nor  in  companies  of  any  size 
and  progressiveness  will  he  last  long.     If  a  subordinate  he 


I 


DOING  THE  DAY'S  WORK 


139 


will  be  dropped;  if  himself  in  charge,  the  business  will  go  to 
pieces  under  him.  But  trouble  comes  with  the  occasional 
procrastinator,  the  man  who  has  an  off-day  now  and  then. 
Neither  he  nor  anyone  else  can  figure  his  time  loss. 

The  difficulty  here  results  from  failure  to  use  will-power. 
It  requires  motive  force,  resolution,  decision  of  character,  to 
begin  a  task  promptly  and  push  it  right  through  to  comple- 
tion. Such  power  of  will  can  be  developed  for  every  one  of 
us,  and  it  can  be  supported  also  by  right  habits  of  work,  as 
will  be  seen  in  later  chapters. 

The  Bi^  Dreamy  Idea 

The  big  dreamy  idea  is  perhaps  the  most  productive  of 
all  the  obstructors.  It  holds  the  attention  rapt  with  its  vision 
of  things  to  be,  at  the  same  time  deftly  substituting  wishbone 
for  backbone.     Its  victims  we  meet  in  the  market  place. 

We  all  know  the  day-dreamer  in  the  market  place.  Inven- 
tors exhibit  momentous  discoveries,  contrivances  which  will 
extract  gold  from  sea  water  or  produce  gasoline  at  one  cent 
a  gallon  or  prevent  forever  railroad  wrecks.  Experts  glow- 
ingly unfold  schemes  for  binding  capital  and  labor  together  as 
one,  or  of  speculating  on  the  "sure  thing"  basis,  or  of  living 
in  some  Eden  bower  without  toil  and  without  price.  Yet  the 
possessors  of  such  gorgeous  plans  are  themselves  commonly 
of  seedy  appearance,  wearers  of  threadbare  coats,  patronizers 
of  the  lunch  counter,  and  not  averse  to  borrowing  a  "five." 

It  may  seem  a  far  cry  from  such  seedy  persons  to  any  man 
actually  managing  his  own  business,  or  in  a  responsible  posi- 
tion with  any  large  concern.  But  the  distance  is  often  less 
than  we  think. 

Especially  in  a  great  organization  where  motion  has  to  be 
passed  along  through  many  steps,  where  it  takes  time  to  get  a 
thing  done — even  to  get  it  rightly  planned — the  bureau  heads, 
that  is,  the  executives  concerned,  often  fail  to  "get  down  to 


I40  THE  DISPATCH  OF  A  DAY'S  WORK 

brass  tacKs."  When  a  large  part  of  a  project  must  be  carried 
through  by  others  to  whom  a  certain  leeway  must  be  left,  it 
is  harder  for  the  executive  to  visualize  the  task  than  when 
he  has  to  carry  it  through  with  his  own  hands.  For  example, 
a  member  of  Congress  will  make  an  inquiry  of  a  government 
department  which  involves  weeks  of  work  by  the  clerks.  In 
a  big  organization  with  big  resources  and  elaborate  methods, 
almost  always  a  certain  large,  extravagant,  indefinite  way  of 
looking  at  facts  is  bred  in  certain  of  the  executive  officials. 
The  vision  which  flits  into  the  mind  may  be  priceless; 
yet  its  pricelessness  is  due  to  its  realization,  not  to  its  concep- 
tion. Every  idea,  or  scheme,  however  far-reaching,  must 
precipitate  itself  in  some  definite  tangible  action.  Otherwise 
it  has  no  place  in  the  day's  schedule.  The  business  train  is 
not  to  be  stopped  in  order  that  the  executives  may  gaze 
dreamily  at  the  scenery. 

An  Always  Available  Stock  of  Raw  Materials 

He  who  would  concentrate,  decide,  and  dispatch  must 
have  the  raw  materials  with  which  to  work.  Things  forgot- 
ten indicate  that  certain  raw  materials  are  lacking,  and  like 
an  engine  minus  connecting  rod  the  mental  processes  are 
halted. 

As  an  example  of  poor  dispatching  the  forgetful  man 
takes  high  rank.  He  wastes  time  and  effort  in  wondering 
what  to  do  next,  still  more  time  in  trying  to  recall  the  raw 
materials  necessary,  and  to  the  end  he  fears  to  decide  because 
the  evidence  flitting  elusively  here  and  there  within  the  mind 
renders  decision  uncertain  and  unsafe.  What  would  happen 
to  an  express  train  run  according  to  such  methods?  What 
would  happen  to  an  ocean  liner  whose  sole  guidance  was  a 
captain  thus  tossed  about  by  a  treacherous  memory? 

Neither  railroad  company  nor  steamship  line  accept  such 
risks,  nor  should  the  man  at  the  desk. 


DOING  THE  DAY'S  WORK  141 

The  suggestions  given  in  previous  chapters,  while  they 
cannot  be  called  infallible,  do  nevertheless  enable  the  execu- 
tive to  keep  always  at  hand  in  files  and  memory,  stores  of 
raw  materials,  and  thus  overcome  in  great  measure  the  ob- 
struction of  things  forgotten. 

Yesterday  Is  Dead;  Be  Done  With  It 

Yesterday's  loose  ends,  if  left  over  for  today,  are  time- 
consumers.  They  drag  on;  they  clutter  up  the  desk;  they 
confuse  the  mind;  they  multiply  until  clear-cut  thinking  is 
aborted  and  the  energy  which  might  have  brought  about  defi- 
nite accomplishment  expends  itself  in  half-hearted  attempts. 

The  only  way  to  deal  with  yesterday's  loose  ends  is  to 
do  things  to  a  finish,  today. 

Some  practical  aids  for  carrying  out  this  policy  of  doing 
things  to  a  finish  have  already  been  discussed.  The  flat-top 
desk  encourages  a  definite,  clean-cut  dispatch  of  the  tasks  one 
has  to  do.  The  day's  work  file  removes  from  view  masses  of 
miscellaneous,  confused  material — sorts  them,  too,  and  holds 
them  in  readiness.  The  hold-over  file  and  the  tickler  remove 
the  uncertainty  and  vagueness  from  even  uncompleted  work; 
they  show  specifically  what  comes  next.  The  plan,  with  its 
time  limits,  still  further  focuses  efifort  upon  certain  definite 
accomplishments. 

The  Waste-Basket  as  an  Ally 

A  further  effective  aid  in  having  done  with  things  now  is 
the  waste-basket.  Its  yawning  cavern  may  call  forth  exe- 
crations from  advertisers  and  letter  writers  in  quest  of  orders, 
but  it  stands  for  wholesome  thinking.  The  man  who,  on  the 
vague  supposition  that  "some  day  I  might  want  to  do  some- 
thing with  these  things,"  hides  away  papers  here  and  there 
until  his  desk  is  a  junk  heap,  gets  choked  up  mentally.  His 
practice  encourages  the  habit  of  indecision.     If,  instead,  each 


142 


THE  DISPATCH  OF  A  DAY'S  WORK 


paper  or  item  as  it  appears  at  the  desk  is  judged  according 
to  its  actual  value,  the  mind  as  well  as  the  desk  receives  a 
good  house  cleaning.     Use  the  waste-basket  more! 

With  these  mechanical  aids  as  allies,  attack  the  work  at 
the  desk.  Proceed  calmly,  systematically,  forcefully.  Carry 
every  piece  of  business  through  to  a  definite  conclusion. 

Dilatory  Co-operation 

The  business  man  works  not  as  an  individual  merely,  but 
as  a  cog  in  his  industrial  machine.  His  personal  efforts  are 
dependent  upon  what  others  do,  and  these  others  are  often 
dilatory  co-operators.  Practically  everyone,  especially  after 
he  has  undergone  a  series  of  committee  meetings  or  confer- 
ences, appreciates  the  jest  that  "co-operation  is  the  thief  of 
time!" 

The  chief  remedy  for  dilatory  co-operation  is  care  in 
planning. 

The  average  business  man  escapes  if  he  can  the  task  of  sys- 
tematically planning  a  job,  and  passes  his  ill-assorted  directions 
along  to  others,  who  as  a  rule  are  similarly  delinquent.  There- 
by he  initiates  a  series  of  difficulties,  which  in  spite  of  heroic 
efforts  here  and  there,  are  almost  certain  to  delay  the  final 
results.  Consider  the  printer  as  a  typical  victim.  What  tales 
he  can  unfold  of  rush  orders,  of  missing  parts  of  the  copy,  of 
last-minute  changes,  of  telegrams  to  the  engraver,  and  mes- 
senger boys  to  the  foundry,  of  threats  and  pleadings  for  what 
would  have  been  delivered  days  since  had  it  only  been  planned 
properly ! 

Getting  things  done  through  co-operation  necessarily  re- 
quires time.  But  this  time  can  be  materially  shortened  if 
the  initiator  of  the  task  plans  for  its  accomplishment  all  the 
way  through,  takes  into  account  the  individuality  and  spe- 
cial conditions  of  the  other  persons  concerned,  assigns  its 
various  parts  in  due  season,  makes  tickler  records  of  the  dates 


DOING  THE  DAY'S  WORK  143 

when  results  are  due,  and  notifies  promptly  any  delinquent. 
If  system  is  worth  while  to  the  individual  in  general,  it  even 
more  truly  serves  the  man  who  works  with  others. 

Interruptions — By  House  Men 

The  executive,  industrious  though  he  may  be  in  pushing 
his  own  tasks,  may  see  his  program  hopelessly  delayed  unless 
he  can  defend  his  time  from  unwarranted  interruptions. 

Some  of  the  interruptions  come  from  within  the  organiza- 
tion, from  his  associates,  subordinates,  and  superiors.  It  is 
pretty  well  recognized  in  the  factory  that  continuous  oper- 
ation is  necessary  for  maximum  output,  hence  shut-downs  are 
guarded  against.  It  is  by  no  means,  however,  so  generally 
recognized  in  the  executive  office  that  steady  work  means 
larger  mental  output  and  that  interruption  here  is  quite  as 
serious  as  shut-downs  in  the  machine  shop.  As  a  result,  house 
men  are  constant  offenders. 

Much  of  this  promiscuous  visiting  will  be  avoided  if  each 
official  follows  the  plan  outlined  in  Chapter  IV,  of  assigning 
pockets  in  the  day's  work  file  to  his  various  co-workers  and, 
by  placing  in  these  pockets  all  items  having  to  do  with  a  cer- 
tain co-operator,  makes  one  conference  with  him  take  the 
place  of  many. 

A  General  Office  Schedule 

This  plan  if  carried  a  step  further  involves  the  drawing 
up  of  a  general  office  schedule,  with  which  the  various  indi- 
vidual schedules  are  correlated.  An  example  is  here  given 
of  such  a  schedule  as  it  has  been  worked  out  in  a  New  York 
office  and,  it  may  be  added,  used  with  salutary  effect.  (See 
Figure  17.) 

The  same  idea  has  been  applied  witii  even  greater  elabo- 
rateness and  entire  success  by  a  large  manufacturing  com- 
pany.    (See  Figure  18.) 


144 


THE  DISPATCH  OF  A  DAY'S  WORK 


Office  Schedule 

In  order  to  reduce  the  number  of  interruptions  to  a  mini- 
mum, all  members  are  requested  to  adhere  as  strictly  as  pos- 
sible to  the  following  schedule: 

8:45-9:30  Preparation 

Reading  mail,  memos,  interphone  calls,  interviews  with- 
out appointment,  and  other  preparatory  steps  required. 

9:30-12:30  Business 

All  work  requiring  concentration.  Interviews  during 
this  time  only  by  appointment.  No  interphone  calls  or 
memos  unless  absolutely  necessary. 

12:30-2:15  Preparation 

Luncheon  and  informal  conferences,  memos,  interphone 
calls,  interviews  without  appointment. 

2:15-4:00  Business 

Same  as  from  9 :30-i2 :30.  Concentrate  upon  your  own 
work  and  permit  others  to  do  the  same  by  reducing  in- 
terruptions to  a  minimum. 

4  :oo-5  :oo  Miscellaneous 

Sign  mail,  interview  without  appointment,  informal  con- 
ferences, planning  work  for  tomorrow,  and  the  like. 

Outside  callers,  in  so  far  as  this  is  practicable,  should  be 
handled  according  to  the  above  schedule. 

No  member  is  expected  to  break  these  rules  without  valid 
excuse,  which  is  to  be  given  at  time  of  interruption  to  the 
person  disturbed. 


Figure  17.     Office  Schedule 

In   order  to   secure   more   effective   co-operation   among   the   members   of  its 
office  force,  a  New   York   concern   devised  this  office  schedule. 


DOING  THE  DAY'S  WORK 


145 


In  adopting  such  a  schedule,  particularly  in  deciding  upon 
the  classes  of  work  and  their  respective  hours,  full  considera- 
tion must  be  given  to  the  office  involved.  In  general,  minute 
subdivision  and  close  scheduling  should  be  avoided. 

While  it  doubtless  may  be  that  a  schedule  common  to  all 
its  desk-workers  cannot  be  introduced  with  profit  into  every 
office,  the  idea  behind  the  schedule  is  neither  its  classifications 
nor  time  Hmits  nor  printed  form,  but  an  attempt  to  attain 
more  orderly  procedure.  This  idea,  once  it  is  grasped,  may 
possibly  be  sufficient  in  itself  to  reduce  house  interruptions  to 
a  permissible  quantity.  Co-workers  taught  that  concentration 
is  the  ideal  and  interruption  a  sin  to  be  avoided,  will  become 
apologetic  and  brief  when  they  do  interrupt. 

The  Problem  of  Handling  Callers 

The  interruptions  of  members  of  the  force  are  commonly 
less  troublesome  to  the  executive  than  his  outside  callers.  No 
business  man  can  absolutely  refuse  to  receive  callers;  still, 
their  visits  have  only  a  certain  value  to  him  and  the  problem 
is  how  to  secure  this  value  within  the  proper  time  limits. 
The  problem  is  as  serious  for  the  man  in  charge  of  a  depart- 
ment as  for  the  president  of  the  company,  more  serious  in- 
deed, in  a  great  many  cases,  because  he  has  fewer  de- 
fenses. 

The  policy  of  keeping  the  door  always  open  and  then 
getting  rid  of  unwelcome  callers  by  sheer  brusqueness  may 
have  served  very  well  heretofore,  but  has  been  discarded 
today.  Under  the  growth  of  organized  enterprise,  the  time 
of  the  executive,  whether  president  or  bureau  head,  has  become 
too  valuable  for  promiscuous  visitors;  at  the  same  time  the 
increased  appreciation  of  the  value  of  business  courtesy  pro- 
hibits the  use  of  brusqueness  or  incivility  as  a  defense. 

Callers  must  be  admitted  with  discrimination  and  their 
stay  terminated  with  courtesy. 


146 


THE  DISPATCH  OF  A  DAY'S  WORK 


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DOING  THE  DAY'S  WORK  147 

The  Selection  of  Callers 

In  the  selection  of  callers,  sometimes  it  is  a  diplomatic 
young  man  bearing  some  impressive  title  such  as  "Assistant 
to  the  President,"  or  "Executive  Assistant,"  who  learns  the 
nature  of  the  visitor's  errand  and  proceeds  to  make  the  neces- 
sary adjustments.  Sometimes  the  private  secretary  or  the 
switchboard  operator  performs  these  same  functions.  Some- 
times the  office  boy  meets  the  caller  with  a  card  and  the  polite 
request  that  he  will  write  his  name  and  a  message.  The  card 
is  then  duly  passed  upon  behind  the  scenes. 

The  executive  by  some  such  methods  as  these  closes  the 
door  against  unimportant  callers.  Yet  there  are  shrewd 
pickers  of  locks  on  the  outside. 

The  Growing  Aggressiveness  of  Callers 

In  books  on  salesmanship  these  lock-pickers  have  their 
courage  whetted  by  such  statements  as,  "There  are  a  few  men 
— a  very  few — who  are  mighty  hard  to  see.  A  salesman  must 
try  everlastingly  to  find  a  way  to  get  in  instead  of  sitting  back 
and  proving  to  himself  that  it  is  impossible.  When  he  has 
finally  decided  that  it  cannot  be  done,  he  will  be  obliged  to 
watch  some  fellow  in  the  same  line  come  along,  get  in,  and 
make  the  sale.  It  should  be  remembered,  always,  that  there 
are  some  men  who  are  getting  in;  there  are  some  men  from 
whom  the  prospect  is  buying.    Be  one  of  them." 

In  sales  magazines  and  at  every  gathering  of  salesmen, 
stories  on  "How  I  got  by  those  secretaries,"  are  related  with 
pride. 

"A  clerk  at  the  information  desk,"  so  runs  one  of  these 
stories,  "asked  me,  'Whom  do  you  wish  to  see?' 

"*I  don't  wish  anything— I  came  to  see  Mr.  Jennings,'  I 
replied.    Tell  him  I  have  arrived— the  name  is  McClure.' 

"The  girl,  impelled  by  the  assurance  I  put  into  my  com- 


148 


THE  DISPATCH  OF  A  DAY'S  WORK 


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DOING  THE  DAY'S  WORK  149 

mand,  hesitated,  then  telephoned  to  Mr.  Jennings  that  'Mr. 
McClure  had  arrived.'     Mr.  Jennings  came  out." 

The  particular  "obstacles  between  you  and  your  prospect" 
are  analyzed  by  alert  sales  managers,  remedies  appropriate 
for  each  are  devised,  and  the  whole  scheme  charted  for  the 
edification  of  their  men.     (See  Figure  19.) 

The  view  current  today  that  all  men  are  salesmen,  en- 
gaged in  the  marketing  either  of  commodities  or  their  own 
services,  in  itself  exalts  aggressiveness  and  shrewdness  in 
reaching  the  person  with  whom  an  interview  is  sought. 

How  Shall  the  Executive  Protect  His  Time? 

What  does  all  this  mean  to  the  man  in  the  office,  who  has 
his  tasks  to  get  through  on  schedule  time?  Simply  that  the 
forces  of  attack  are  growing  stronger;  to  protect  himself,  he 
must  necessarily  strengthen  his  forces  of  defense. 

Judge  Gary,  Chairman  of  the  Board  of  Directors  of  the 
United  States  Steel  Corporation,  meets  callers  by  appoint- 
ment, a  plan  which  he  adheres  to  rather  strictly.  It  is  said 
that  an  executive  from  a  prominent  Chicago  manufacturing 
house,  armed  with  a  letter  of  introduction  from  the  Presi- 
dent of  the  American  Bridge  Company,  one  day  walked 
unannounced  into  Judge  Gary's  anteroom.  He  had  made  a 
special  trip  to  New  York  to  see  the  Chairman.  After  a  three 
days'  wait  he  returned  to  Chicago  with  his  errand  unfulfilled. 
A  few  weeks  later  he  returned,  this  time  by  appointment, 
interviewed  Judge  Gary  without  delay,  and  closed  an  impor- 
tant deal. 

"Judge  Gary's  time  is  sometimes  filled  for  a  few  weeks 
ahead,"  explained  his  private  secretary.  "However  important 
the  unexpected  visitor,  the  Chairman  cannot  always  drop  his 
work  or  break  engagements  to  see  him.  Unless  the  visitor 
can  transact  his  business  with  other  officers  of  the  company, 


150 


THE  DISPATCH  OF  A  DAY'S  WORK 


he  must  make  his  appointment  through  me  and  wait  until 
Judge  Gary  can  see  him." 

The  president  of  a  Chicago  wholesale  house,  working 
upon  the  principle  that  it  is  easier  to  keep  callers  out  than  to 
get  them  to  go  on  time,  admits  no  caller  directly  to  his  private 
office.  Instead  the  president  leaves  his  office,  usually  with 
some  papers  in  his  hand,  and  greets  the  caller  who  remains  out- 
side the  "dead  line"  railing.  Should  a  short  private  discus- 
sion appear  desirable,  the  president  invites  the  caller  inside 
the  railing  with  some  such  remark  as :  "Come  inside  a  minute 
or  two."  This  time  limit  acts  as  a  warning  suggestion,  which 
is  reinforced  by  the  handful  of  papers  and,  if  necessary,  by 
the  president's  statement  that  he  must  get  back  to  his  desk. 
"Once  he  lands  in  a  chair,  it's  practically  impossible  to  get  a 
man  out  without  dynamiting  him  until  he  has  told  the  whole 
story,"  says  this  executive  in  explaining  his  procedure. 

Shortening  the  Caller's  Stay 

Trouble  may  also  be  forestalled  by  granting  the  caller  a 
definite  amount  of  time  in  advance.  "I  have  a  meeting  this 
morning  at  ten,"  a  traction  executive  told  his  visitor,  "which 
gives  me  fifteen  minutes  now.  I  will  be  back  at  half-past  one 
and  will  then  have  a  half-hour  before  two  o'clock,  when  I 
have  another  engagement.  If  fifteen  minutes  will  do,  I  wish 
you  would  come  in  now;  if  it  will  take  longer,  suppose  you 
come  around  this  afternoon." 

Such  a  simple  and  straightforward  statement  gives  no 
offense,  but  it  usually  does  condense  into  a  few  minutes  what 
otherwise  might  be  a  prolonged  interview. 

Once  the  caller  has  been  admitted,  the  time  should  be  spent 
profitably.  The  caller,  it  is  presumed  by  the  fact  of  his  admit- 
tance, has  a  mission  which  the  executive  considers  worth  his 
while  and  upon  this  mission  accordingly  both  men  should 
focus  their  attention;  irrelevancies  are  time  wasters  to  be 


DOING  THE  DAY'S  WORK 


151 


avoided.  "If  you  want  to  get  the  most  from  the  other  fel- 
low," says  a  newspaper  executive,  "never  talk  about  your- 
self nor  permit  him  to  talk  about  you." 

In  practice  this  policy  may  require  a  certain  amount  of 
planning  for  each  interview;  otherwise  time  is  liable  to  be 
consumed  on  non-essentials  while  some  main  point  possibly 
will  be  overlooked  entirely. 

"I  keep  at  hand,"  says  a  real  estate  executive,  "a  list  of 
things  to  be  taken  up  personally  with  different  people  who 
come  into  the  office.  When  an  habitual  caller  is  announced,  it 
takes  but  the  time  that  he  is  walking  from  the  outside  office 
to  my  door  to  glance  at  his  record  card  and  prime  myself  for 
the  interview.  When  he  comes  in  I  know  exactly  what  I  want 
to  talk  over  with  him  and  I  shape  the  interview  accordingly. 

"I  never  let  a  man  saunter  in  and  talk  at  random  by  way 
of  preamble.  I  get  my  business  through  with  him  first,  close 
it  off,  and  have  that  much  done,  then  I  ask  him  what  he  wants 
of  me  and  am  able  to  get  through  v/ith  the  rest  of  his  call 
in  record  time." 

Closing  the  Interview 

The  interview,  even  though  kept  in  fruitful  channels,  after 
a  time  reaches  the  point  when  its  prolongation  would  mean 
waste.    How  terminate  it? 

Various  expedients  will  be  mentioned.  As  to  their  use  it 
may  be  said  in  general :  ( i )  choose  whichever  expedient  seems 
best  suited  to  your  own  personality  and  that  of  your  caller; 
and  (2)  commence  with  delicate  hints  and  gradually  work 
toward  the  more  extreme  measures,  meanwhile  balancing 
against  the  risks  involved  by  the  caller's  possible  resentment, 
your  own  certain  loss  in  personal  efficiency. 

A  hint  which  suffices  for  some  callers  is  a  remark  such 
as  "I'm  glad  to  have  had  this  opportunity  to  talk  with  you," 


152  THE  DISPATCH  OF  A  DAY'S  WORK 

or  "It's  a  pleasure  to  have  met  you.     Come  in  again  some 
time." 

Rising  as  a  sign  the  interview  is  terminated,  looking  at  the 
clock,  or  drawing  out  upon  the  desk  in  plain  sight  a  formi- 
dable pile  of  work,  are  somewhat  stronger  hints  that  it  is  time 
to  go. 

According  to  a  certain  charming  method  which,  however, 
requires  a  high  degree  of  diplomacy  on  the  part  of  its  user, 
the  host  rises,  reaches  out  to  shake  hands,  and  then  while 
cordially  retaining  the  caller's  handclasp  gently  leads  him  to 
the  door  with  a  few  final  words  on  the  subject  of  the  call  and 
a  pleasant  farewell.  The  visitor  finds  himself  outside  though 
scarcely  conscious  of  how  he  got  there,  and  the  door  is  closed. 

Since  they  recognize  that  any  caller  once  comfortably 
seated  in  a  quiet  private  office  is  liable  to  overstay,  some 
executives  contrive  to  give  a  visitor  as  he  enters  the  sub- 
conscious feeling  that  he  is  just  about  to  depart.  It  may  be 
that  no  chairs  are  provided.  The  executive  sits,  the  visitor 
stands,  unless  he  is  one  to  whom  this  would  be  a  distinct  dis- 
courtesy, in  which  case  both  men  stand.  Or  again,  the  office 
door  is  left  wide  open  and  the  caller  is  seated  where  he  cannot 
avoid  seeing  that  others  are  waiting  outside.  Should  this 
not  have  the  desired  effect,  the  secretary  is  signaled  to  usher 
in  one  of  those  waiting  and  the  newcomer,  on  being  shown  a 
seat,  is  informed  he  will  receive  attention  in  a  minute  or  two. 

The  Distress  Signal 

Another  general  means  for  terminating  the  interview  may 
be  called  distress  signals,  to  which  executives  in  especially 
exposed  positions  sometimes  have  recourse.  The  most  com- 
mon of  these  is  the  electric  buzzer,  concealed  somewhere  on 
the  desk  or  floor  where  it  may  be  pressed  unobtrusively.  As 
soon  as  the  emergency  signal  has  sounded  outside,  an  assist- 
ant or  secretary  appears  who  apologizes  for  the  interruption. 


DOING  THE  DAY'S  WORK  153 

but  is  obliged  to  bring  up  such  and  such  a  matter  for  imme- 
diate action,  and  he  stands  waiting  as  the  caller  makes  his  exit. 
Sometimes  the  assistant  on  receiving  the  signal  calls  up  on 
the  phone,  representing  himself  as  a  house  man  desiring  to 
settle  an  important  matter  and  forcing  from  the  executive  a 
promise  to  confer  with  him  inside  of  five  minutes;  the  visitor, 
overhearing  the  conversation,  takes  hurried  leave. 

The  story  is  told  of  a  prominent  exporter  who,  wishing 
to  terminate  an  interview,  in  the  most  charmingly  informal 
manner  lights  a  cigar,  strolls  over  to  a  window,  spreads  his 
legs  apart,  and  with  hands  folded  behind  his  back  seemingly 
prepares  to  continue  the  conversation  at  his  ease.  But  to 
the  secretary  sitting  just  outside  the  glass  door,  this  naive 
attitude  of  his  employer  constitutes  a  distress  signal.  He 
sweeps  in  with  a  huge  handful  of  "important  papers  which 
must  be  attended  to  at  once  in  order  to  catch  a  foreign  mail." 
The  caller  thereupon  is  ushered  out  with  expressions  of  regret. 

Who  Else  Is  Waiting? 

In  deciding  whether  or  not  to  close  the  interview,  the 
executive  discovers  oftentimes  that  much  depends  upon  what 
callers,  if  any,  are  waiting  outside  to  see  him.  In  some  cases 
the  secretary  is  left  in  control  of  this  matter,  it  being  his 
function  to  signaj  the  employer  by  buzzer  when  an  important 
caller  has  arrived.  The  chief  may  or  may  not  communicate 
with  him  further  before  taking  leave  of  his  present  caller, 
much  depending  upon  the  secretary's  proficiency. 

For  handling  cases  such  as  these  the  telautograph  is  use- 
ful. Should  a  caller  be  staying  rather  long,  the  executive  by 
taking  up  his  electric  pencil  inquires  as  to  who  is  waiting  out- 
side. The  secretary,  by  using  a  similar  pencil,  replies  that 
Mr.  Blank  is  there;  upon  the  receipt  of  the  information  the 
executive  can  arrange  his  time  accordingly. 

After  all  is  said,  however,  the  reception  of  callers  is  one 


154 


THE  DISPATCH  OF  A  DAY'S  WORK 


of  the  important  duties  of  practically  every  man  who  has 
executive  work.  His  purpose  is  to  accomplish  as  much  as 
possible  during  the  time  which  his  program  permits. 

President  Roosevelt  and  His  Callers 

The  classic  example  of  successful  management  of  callers 
is  the  account  by  George  Fitch,  in  The  American  Magazine, 
of  President  Roosevelt  in  the  White  House.  The  writer  of 
the  account  had  called  upon  the  President  accompanied  by 
his  Congressman. 

As  we  finished  our  inspection,  which  included  a  view  of 
the  President's  desk  in  his  private  office,  the  President  came 
out  and  began  working  his  way  rapidly  through  the  callers, 
taking  one  group  at  a  time,  and  using  both  hands  and  voice 
incessantly.  ...  As  he  worked  each  group  he  sorted  out 
the  visitors  ar>d  classified  them.  Some  he  merely  greeted 
cordially.  Others  he  asked  to  stand  aside  a  minute  for  fur- 
ther remarks.  Still  others  were  asked  to  step  into  his  office 
and  wait  for  him.  Then,  after  having  rough-finished  half 
a  dozen  groups,  the  president  would  go  back  and  work  over 
the  debris. 

It  was  then  that  we  saw  him  in  real  action.  He  told  a 
story  and  arrived  at  the  point  with  a  deep,  chuckly  laugh 
which  pervaded  his  entire  system  and  was  reflected  from 
every  tooth — a  regular  mouthful  of  glee.  He  frowned  tre- 
mendously and  a  pent-up  epigram  exploded  with  a  loud  bang; 
he  suddenly  reached  forward  and  bit  the  atmosphere  in  two 
while  emphasizing  a  word.  He  reached  a  woman  caller  and 
his  entire  personality  dissolved  and  changed  like  a  river  mist. 
Bowing  low  as  he  shook  hands,  he  greeted  her  with  an  old- 
fashioned  courtesy  and  a  soft-voiced  deference  to  woman- 
kind that  was  most  attractive.  Passing  on,  he  heard  a  propo- 
sition and  dismissed  it  with  two  "noes"  that  would  have  cut 
a  ship's  cable  in  two — all  in  good  humor  and  friendliness. 
Then,  remembering  a  group  which  he  had  sent  into  his  office 
to  be  digested,  he  hurried  in  to  them  and  considered  their 
case.  ... 

The  Congressman  in  seeking  a  better  opportunity  for  his 
visitor  to  talk  with  the  President  blurted  out,  "Mr.  Presi- 
dent,  I   am   on  the  sub-committee  on    fortifications."     Mr. 


DOING  THE  DAY'S  WORK  1 55 

Roosevelt  immediately  drew  the  little  group  into  a  comer, 
where  he  at  once  plunged  into  affairs  of  state.  He  took  the 
lid  right  off  of  the  international  pot  and  let  us  look  in.  .  .  . 
As  I  remember  it  now,  we  had  really  looked  on  open-mouthed 
for  fifteen  minutes — a  fear  comes  over  me  that  it  was  really 
only  two — and  that  at  the  end  of  that  time  the  President, 
having  said  what  was  uppermost  in  his  mind,  had  terminated 
the  interview.  That  is  the  funny  thing  about  it.  We  came 
away  feeling  as  if  we  had  terminated  the  interview.  They 
say  everybody  does — that  no  one  stays  a  minute  longer  than 
the  President  wants  him  to  and  yet  no  one  knows  how  the 
President  does  it.  At  a  certain  moment  the  visitor  clutches 
his  hat  convulsively  and  the  President,  overcoming  his  dis- 
appointment, manfully  bids  him  goodbye. 

But  what  makes  the  visitor  clutch  his  hat?  The  explana- 
tion is  simple.     Roosevelt  himself  dominated  the  interview^. 

Dominating  the  Interview 

The  spineless  caller  who  hangs  on  rather  than  make  the 
effort  required  to  break  away,  must  have  his  mind  made  up 
for  him.  The  persistent  stayer  who  remains  to  urge  again 
and  again  a  project  against  which  his  host  has  already  decided, 
must  have  his  views  definitely  reshaped.  Positiveness  of 
manner  accomplishes  this.  If  the  executive  impresses  his 
callers  as  a  man  of  infinite  leisure,  most  of  them  will  stay  too 
long.  If  he  does  not  get  quickly  to  the  point,  many  of  them, 
if  they  do  business,  will  have  to  stay  too  long.  The  best 
method  of  saving  time  in  an  interview  is  for  the  executive 
himself  to  serve  as  an  example  of  what  both  men  should  do, 
viz.,  concentrate,  decide,  dispatch. 


Exercises 

Wasting  Time 

Several  salesmen  met  in  Boston  some  time  since  for  a  little  get- 
together.     One  of  them,  the  manager  of  a  New  England  territory, 


156  THE  DISPATCH  OF  A  DAY'S  WORK 

took  the  floor.  His  remarks  are  thus  reported  by  an  unofficial  secre- 
tary: 

"He  first  pointed  out  that  life  consists  of  fads.  He  had  one 
at  the  moment  and  it  consisted  of  a  constant  analysis  of  the  way 
he  occupies  his  time. 

"He  approached  his  topic  by  showing  us  how  he  had  analyzed  his 
expenditures  over  a  period  of  two  years;  and  the  revelations  that  this 
analysis  had  exposed.  For  about  two  months  he  had  carefully  ana- 
lyzed his  time  in  much  the  same  way  and  the  revelations  were  indeed 
startling. 

"Time,  he  pointed  out,  is  our  most  valuable  asset.  Not  alone  in 
dollars  and  cents  but  in  that  far  more  valuable  commodity — mental 
growth. 

"He  had  divided  his  time  into  two  parts — productive  and  unpro- 
ductive.   And  these  again  he  subdivided  into  logical  divisions. 

"He  quoted  from  memory  and  here  is  the  result — 

1.  Productive 

(a)  Constructive  business-getting  time 

(b)  Avocation — (not  mere  diversion) 

(c)  Reading 

(i)   Solid 
(2)  Light 

(d)  Exercise 

etc.,  etc. 

2.  Unproductive 

(a)  Meals 

(b)  Bed 

(c)  Chores 

(d)  Diversion 

(e)  Idleness 

etc.,  etc. 

"As  a  result  he  had  discovered  several  important  facts: 
"i.  That  he  had  been  deceiving  himself  about  the  amount  of  work, 
business-getting  work,  that  he  had  been  doing. 

"2.  That  four  hours  each  day  were  absolutely  unaccounted  for — 
wasted  in  pure  idleness. 

"3.  That  the  daily  round  showed  lack  of  steadiness, 
"As  a  matter  of  fact  the  real  worth  and  object  of  such  an  analysis 
is  to  cultivate  steadiness;  the  steadiness  of  the  six-cylinder  which 
keeps  on  chug-chugging  all  the  time  and  not  in  spurts. 

"Bert  had  discovered  that  his  days  were  irregular  in  the  extreme. 
One  day  so  much  work  done ;  next  day  not  nearly  so  much ;  one  day 
so  much  time  given  to  meals;  next  day  far  too  much. 


DOING  THE  DAY'S  WORK 


157 


"His  analysis  showed  him  the  necessity  of  proper  allocation  of  time 
for  work,  meals,  sleep,  exercise,  etc.,  each  day." 

This  salesman-manager  has  an  income  running  well  into  five  fig- 
ures, so  he  cannot  very  well  be  accused  of  being  a  mere  theorist. 
He  emphasized  an  idea  well  worth  while;  time  is  a  most  valuable 
asset  and  everyone  should  make  an  analysis  to  see  how  his  is  being 
spent. 

For  two  or  three  days  keep  accurate  record  in  minutes  of  all  time 
spent  from  9  a.m.  to  5  p.m.,  or  whatever  your  regular  hours  are.  Do 
not  postpone  this  recording  until  the  close  of  the  day,  but  jot  down 
the  minutes  as  you  go  along,  five  for  mind  wandering,  ten  for  wor- 
rying, etc.  Be  honest  with  yourself  in  this,  too;  the  question  is  not 
at  all  whether  you  like  the  showing  made  but  solely  what  are  the 
facts?  The  time  spent  on  some  of  these  things  is  not  entirely 
wasted,  as,  for  instance,  during  a  ten-minute  gossip  something  may 
be  said  which  in  the  way  it  fits  into  the  day's  work  may  be  worth 
two  minutes;  this  two  minutes  accordingly  would  be  placed  in  a 
second  column  as  a  credit. 

Your  percentage  of  efficiency,  however  low  it  may  be,  undoubtedly 
shows  higher  in  this  computation  than  your  working  methods  ac- 
tually justify.  The  reason  is  that  even  with  the  most  careful  re- 
cording a  great  many  minutes  will  not  be  accounted  for,  probably 
wasted,  whereas  in  the  above  records  all  time  not  accounted  for  is 
credited  as  being  properly  spent. 

Are  you  satisfied  with  this  percentage  of  efficiency?  Or  do  you 
find,  as  did  this  sales  manager,  that  you  have  been  deceiving  yourself 
about  the  amount  of  time  devoted  to  productive  work? 

Your  Own  Record 

Do  I  or  do  I  not  dispatch  my  work  on  schedule  time? 

Within  the  big  organization  where  your  working  days  are  spent, 
you  already  have  a  reputation  for  promptness  in  meeting  your  obli- 
gations or  you  are  known  as  a  person  whose  laxness  in  dispatching 
continually  delays  the  business  game.  Because  so  many  men  are 
addicted  to  this  latter  practice  and  yet  wish  to  escape  the  conse- 
quences, poor  dispatching  naturally  associates  itself  with  countless 
attempts  to  "pass  the  buck." 

We  shall  employ  Test  Chart  8  as  a  check  upon  ourselves.  The 
twelve  pieces  of  work  selected  ought  not  to  be  trivial  matters  but 
tasks  for  which  a  fair  amount  of  preparation  is  required.  The  first 
two  causes  of  delay  specified  in  the  form  have  been  discussed  in  the 
present  chapter;  the  five  factors  in  planning  are  object,  methods, 
equipment,  materials,  and  schedules;  and  the  seven  devils  are  pro- 
crastination, the  day-dream,  things  forgotten,  yesterday's  loose  ends, 


158 


THE  DISPATCH  OF  A  DAY'S  WORK 


dilatory  co-operation,  interruptions  by  associates,  and  round-about 
methods.  A  delay  may  be  due,  of  course,  to  more  than  one  cause. 
Use  check  marks  for  the  replies  when  this  is  possible. 

When  Test  Chart  8  has  been  completed,  survey  the  result.  Frankly, 
what  is  your  opinion  of  yourself  as  a  dispatcher? 


Twelve    Pieces 
OF    Work    Re- 
cently    C  0  M  - 

PLETED 

Condition  of 
Dispatch 

Cause  of  Delay 

Com- 
pleted 
X)N  Time 

Number 
Delayed 

Time 
Delayed 

Faulty 
Plan- 
ning 

Seven 
Devils 

Other 
Causes 

Test  Chart  8.    My  Record  as  a  Dispatcher 


Improvement 

Some  improvement  doubtless  is  in  order.  Follow  the  specific 
plans  you  have  outlined  for  yourself  according  to  Chapter  V,  and 
during  the  next  month,  two  months,  or  whatever  definite  time  you 
set  for  yourself,  seek  in  every  possible  task  to  eliminate  wastes  in 
time.  Use  your  specific  plans  in  cutting  directly  to  the  goal,  make 
every  moment  and  every  motion  result  getting. 

At  the  end  of  the  period  set,  once  more  use  Test  Chart  8  to  enter 
your  record  of  accomplishment  for  two  days  or  so.  How  goes  your 
improvement? 


CHAPTER  IX 

SHORT-CUTS 

A  straight  line  is  the  shortest  distance  between  two  points. 

-Euclid. 

Amateur  Versus  Expert 

The  man  intent  upon  dispatching  his  day's  work  upon 
schedule  time,  but  apparently  unable  to  do  so  will  discover 
possibly  that  like  a  Bostonian  upon  the  winding  streets  of  his 
city,  he  has  been  proceeding  most  indirectly  to  the  goal.  The 
solution  here  is  a  short-cut. 

The  insistence  upon  short-cuts  is  not  a  foible  of  the  scien- 
tific manager,  but  is  based  upon  the  very  nature  of  things. 
Tyrus  Cobb  at  the  plate  is  much  less  given  to  motions  than  is 
the  usual  amateur  batsman,  but  he  has  his  eye  on  the  ball  and 
he  "connects"  with  it.  Tris  Speaker  in  the  outfield  chases 
back  and  forth  considerably  less  than  the  bush  leaguer,  but 
when  he  does  move  it  is  in  the  right  direction.  Rose  Fritz, 
the  world's  champion  typist,  in  her  speed  contests  is  apt  to 
deceive  the  onlooker,  for  even  as  a  record  is  being  broken  her 
fingers  glide  easily  over  the  keys. 

The  amateur,  in  general,  attains  his  end  by  roundabout 
methods;  the  expert  uses  short-cuts. 

A  Lesson  from  Animal  Psychology 

The  psychology  upon  which  the  principle  of  short-cuts 
is  based  is  illustrated  in  a  very  interesting  way  by  a  series 
of  experiments  Professor  Thorndike  performed  with  a  cat. 
The  animal  was  placed  inside  a  closed  box,  which  was  con- 
structed of  slats  and  could  be  opened  by  means  of  a  wire  loop 
which  hung  from  the  ceiling. 

159 


l6o  THE  DISPATCH  OF  A  DAY'S  WORK 

When  first  put  into  the  box  the  cat  commenced  to  struggle 
vigorously,  tried  to  squeeze  between  the  slats,  clawed  and  bit 
at  the  bars,  and  even  thrust  its  paws  through  the  openings  and 
clawed  at  whatever  it  could  reach  outside.  In  the  course  of 
its  clawing  and  biting,  it  by  and  by  attacked  the  suspended 
loop,  whereupon  the  door  opened  and  it  was  free.  In  suc- 
ceeding attempts,  improvement  was  shown;  the  animal  which 
in  its  first  attempt  to  escape  consumed  i6o  seconds,  in  its 
twelfth  attempt  consumed  only  20,  and  in  its  twenty-fourth 
consumed  but  7.  The  various  non-successful  motions  were 
eliminated;  the  necessary  motions  were  used  at  once. 

Short-Cuts  Represent  Perfected  Methods 

What  we  have  here,  if  the  time  periods  required  are  plotted 
graphically,  is  a  curve  of  learning.  First  attempts  are  found 
to  be  crude,  wasteful,  time  consuming;  succeeding  attempts 
bring  about  continuous  improvement  until  the  minimum  of 
time  and  effort  is  expended,  which  means  that  normally  crude 
and  wasteful  methods  are  replaced  by  short-cuts.  The  prin- 
ciple involved  is  true  even  for  the  executive  in  his  private 
office. 

The  man  who  would  be  expert,  no  matter  what  his  posi- 
tion, must  adopt  short-cuts. 

The  following  short-cuts  are  illustrative  of  a  line  of 
thought  which  may  profitably  be  carried  much  further. 

Conservation  of  Time 

The  buyer  for  a  machinery  jobbing  house,  who  meets 
many  callers,  fitted  out  his  office  with  two  work  places.  "If 
I  am  talking  to  one  man  when  another  arrives,"  he  explained, 
*T  ask  the  second  to  go  to  the  vacant  desk  and  prepare  what- 
ever he  may  have  to  show. 

"If  the  salesman  I  am  talking  with  is  inclined  to  overstay 
his  welcome,  I  explain  that  I  feel  I  should  not  keep  the  other 


SHORT-CUTS  i6i 

man  waiting.  In  this  way  I  can  excuse  myself  gracefully, 
leaving  the  first  caller  to  put  away  his  samples  or  photographs 
while  I  go  to  the  other. 

"Similarly,  when  I  am  through  with  the  next  man,  I  re- 
turn to  the  desk,  while  the  second  caller  puts  his  paraphernalia 
away.  You  may  not  imagine  that  this  saves  me  much  time  in 
the  course  of  a  day,  but  it  does." 

Fill  in  the  vacant  periods :   hoard  the  minutes. 

A  trade  paper,  a  book,  some  reports,  routine  correspond- 
ence, an  unexpected  caller,  a  short  period  of  calisthenics,  these 
are  some  of  the  many  items  which  may  be  sandwiched  into  the 
vacant  period.  Keep  9:00  a.m.  to  5:00  p.m.  sacred  for 
work,  its  minutes  packed  with  accomplishment. 

Business  Time  for  Business 

Keep  free  from  personal  visitors  and  personal  matters 
during  the  business  day.  The  firm  in  paying  your  salary  has 
first  claim  to  your  time  and  energies. 

Some  Things  Not  To  Do 

Do  not  sharpen  pencils,  fill  fountain  pens,  nor  run  errands. 
Your  time  is  high-priced,  and  the  firm  loses  whenever  a  high- 
salaried  man  performs  low-priced  tasks. 

Supervising  from  the  Office 

Office  partitions  of  clear  glass  enable  a  manager  to  work 
at  his  desk  and  supervise  at  the  same  time.  These  partitions 
afford  him  good  light,  air,  warmth  and  comfort,  and  keep  him 
in  sight  of  his  men. 

Words  versus  Check  Marks 

Checking  is  quicker  than  writing,  and  for  many  purposes 
is  entirely  adequate.  (See  Figure  20.)  In  drawing  up 
record  blanks,  routing  sheets,  reference  forms,  and  the  like, 


1 62 


THE  DISPATCH  OF  A  DAY'S  WORK 


provide  for  checking  instead  of  writing  whenever  a  check 
mark  will  serve. 


Office  of  the  General  Manager 
Date,  December  20,  1918 


Referred  to 

Mr.  Alcorn 

"  Andler    . . . 

"  Berwin   .  . . 

"  Bickerstoff 

'•  Burger    . . . 

"  Diamond   . . 
Eldridge    . . 

"  Ewell    .... 

"  Frome    . . . . 

"  Harris   . . . . 

"  Hylan   .... 

"  Mallory  ... 

"  Martin    . . . 

"  Monroe  . . . 


Mr.  Murrell 

"  Pearson 

'  Peters    .. 

"  Peterson 

"  Roswell  . 


For  attention 

"     approval    

"     comment    

"     report  

"     reading    

"  reply    direct. . . 

"  return  to  G.  M. 

"     file 


Figure  20.    Checking  System 

When  a  busy  executive  has  a  number  of  papers  to  pass  along,  the  addressing  of 
them  for  the  inter-organization  delivery  and  the  noting  upon  each  the  directions 
required  becomes  a  considerable  task.  The  use  of  such  a  blank  as  here  shown  simpli- 
fies the  process  materially. 

Use  of  Both  Hands 

Use  both  hands  whenever  the  work  can  thereby  be  ex- 
pedited. Just  because  a  man  happens  to  be  right-handed  is 
no  reason  for  the  left  hand  to  serve  only  as  a  paper  weight. 

Head  versus  Heels 

In  a  wholesale  grocery  house  which  was  suffering  from 
rapid  growth,  each  individual  order  was  turned  over  to  a 
clerk  who  checked  off  the  items  of  that  order  consecutively  as 
he  filled  them.  This  plan  required  many  clerks  and  the  stock- 
room was  a  scene  of  incessant  activity  with  much  rushing  back 
and  forth.     The  clerks  were  paid  a  very  low  wage  ($8  per 


SHORT-CUTS 


163 


week),  but  the  cost  of  filling  orders  was  high;  still  they  "had 
always  done  it  that  way."  Finally  the  congestion  and  delay 
became  too  great  and  as  the  next  move,  each  clerk  was  given 
six  orders  to  fill  simultaneously  as  he  went  from  place  to  place. 
This  and  the  installation  of  a  general  trucking  system,  caused 
a  decided  improvement.  Following  this,  the  stockroom  was 
departmentalized,  the  required  number  of  order  fillers  sta- 
tioned in  each  section,  and  the  items  of  the  order  itself  were 
distributed  from  the  office  to  the  departments  and  assembled 
in  the  shipping  room.  Wages  were  advanced  twenty-five  per 
cent,  but  the  cost  of  filling  orders  was  reduced  fifteen  per  cent, 
because  the  clerks  spent  less  time  in  walking  and  more  time  in 
taking  goods  from  the  shelves. 

Dispatch  several  items  on  one  trip. 

Starting  and  Stopping 

The  office  manual  and  the  office  clock  call  for  every  minute 
of  the  business  man's  time — with  an  interval  for  lunch — from 
9  in  the  morning  till  5  in  the  evening.  During  these  hours  he 
should  be  pushing  the  business  incessantly.  But  the  average 
man  is  a  trimmer.  He  starts  tardily  and  quits  over-early.  It 
is  true  that  the  foes  of  system — the  seven  little  devils  perched 
upon  the  desk  all  day  long — are  especially  insistent  at  these 
times;  nevertheless,  they  can  and  should  be  ousted. 

Get  under  way  promptly :   keep  under  way  to  the  close. 

Day's  Work  Plan  for  the  Secretary 

The  time  spent  in  giving  the  secretary  his  directions  can 
be  cut  down  by  arranging  with  him  a  day's  work  plan.  Such 
a  plan  will  care  for  all  regular  items  and  its  flexibility  permits 
the  handling  of  specials. 

Filing  Short-Cuts 

In  filing  large  numbers  of  cards  or  other  material,  a  pre- 
liminary assorting  cuts  down  considerably  the  time  required. 


l64  THE  DISPATCH  OF  A  DAY'S  WORK 

A  box  fitted  with  press-board  guides  serves  very  well  for 
arranging  correspondence  for  filing,  a  distributor  with  fan- 
like leaves  is  handy  if  the  classes  are  not  numerous.  An  or- 
dinary sheet  of  cardboard  properly  ruled  will  handle  small 
cards  very  well.  Should  the  cards  be  3  x  6-inch  squares  for 
example,  mark  off  a  24  x  30-inch  cardboard  into  4  x  6-inch 
squares  and  letter  these  in  alphabetical  order,  the  latter  in  each 
case  being  placed  near  the  top  line  of  the  square.  Sort  the 
cards  out  upon  the  proper  squares,  then  file  them  into  the  card 
index. 

Use  of  Symbols 

Multum  in  parvo  is  attained  by  using  symbols. 

E.  St.  Elmo  Lewis  by  jotting  a  figure  on  the  pages  of  a 
trade  paper  in  effect  tells  his  secretary,  "Clip  this  article  at 
your  convenience,  place  it  among  the  other  papers  in  the  file 
basket,  and  later  on  when  you  dispose  of  these  see  that  this 
one  gets  into  the  proper  cabinet,  behind  the  tab  marked  '21'  " 
Figures  express  his  filing  system  in  code. 

Professor  Hotchkiss  in  correcting  his  English  themes  pro- 
vides his  students  a  full  lesson  on  the  principles  of  business 
composition  though  he  jots  only  a  few  figures  on  the  page. 
These  figures  in  each  case  refer  to  rules  and  references  which 
appear  in  printed  form  upon  the  margin,  and  hence  can  readily 
be  consulted. 

Standarize,  then  express  the  standard  by  a  symbol. 

Preparation  for  Dictation 

When  about  to  take  up  a  batch  of  letters  for  disposal, 
many  men  without  first  ascertaining  that  they  are  ready  to  dic- 
tate, press  the  buzzer  for  a  stenographer.  It  is  only  after  the 
young  lady  appears,  ready  for  her  part  of  the  task,  that  they 
discover  that  some  necessary  folder  has  not  yet  been  secured 
from  the  file,  that  certain  estimates  are  still  to  be  decided  upon. 


SHORT-CUTS 


165 


or  perhaps  that  a  required  conference  remains  to  be  held.  In 
short,  they  are  not  ready  to  dictate  and  they  discover  this  fact 
too  late. 

Always  be  ready  to  dictate  when  the  stenographer  is 
called. 

It  is  true  that  her  time  is  less  expensive  than  an  official's, 
yet  even  less  expensive  time  should  not  be  wasted.  Moreover, 
some  of  the  worst  offenders  in  this  respect  are  usually  men 
whose  salaries  are  little  beyond  that  of  a  first-class  stenog- 
rapher. 

Speed  in  Dictating 

Dictate  rapidly.  The  attempt  itself  stimulates  thought, 
and  is  conducive  to  that  quick,  vigorous  diction  before  which 
correspondence  melts  away. 

Elimination  of  Wasteful  Details 

In  answering  a  number  of  letters  do  not  dictate  the  full 
name  and  address  of  each  correspondent.  This  is  time-con- 
suming because  the  stenographer  must  write  much  of  it  in 
long  hand,  and  quite  needless  since  such  details  can  readily  be 
copied  from  the  letter  replied  to,  if  this  is  turned  over  to  her. 
As  you  reply  to  letter  after  letter,  number  each  in  order  and 
dictate  merely  this  number. 

Dispatch  in  Handling  Correspondence 

Men  commonly  read  their  mail  twice,  once  to  get  a  general 
idea  of  its  import  and  urgency,  and  the  second  time  to  give  it 
detailed  consideration.  Condense  most  of  this  into  the  first 
reading.  Dispatch  the  easy  ones  with  finality;  assort  the  re- 
mainder into  the  day's  work  file,  at  the  same  time  underscor- 
ing significant  words  or  phrases.  In  dictating  later  on  you 
will  be  saved  time  which  would  otherwise  be  spent  upon  irrele- 
vant details. 


l66  THE  DISPATCH  OF  A  DAY'S  WORK 

Color  Schemes 

A  color  scheme  in  the  office  can  at  times  be  made  to  serve 
a  most  useful  purpose.  One  general  manager,  for  example, 
assigns  each  department  a  color — red  for  the  purchasing,  blue 
for  the  accounting,  green  for  the  production,  etc. — and  the  de- 
partmental color  identifies  all  the  forms  and  memoranda  which 
are  issued.  Another  employs  colors  to  indicate  different  de- 
grees of  urgency.  Papers  in  red  must  receive  immediate  at- 
tention, those  in  blue  are  to  be  disposed  of  today,  and  the 
white  in  the  regular  routine.  The  scheme  is  really  nothing 
more  than  a  color  code,  the  various  colors  as  symbols,  repre- 
senting whatever  information  has  been  previously  decided 
upon. 

Carbon  Copies 

Copying,  which  the  use  of  carbon  might  have  obviated,  is 
unbusinesslike.  It  has  become  almost  second  nature  for  typ- 
ists in  transcribing  dictation  to  make  one  or  more  copies  at 
the  same  time,  but  this  is  only  one  of  the  many  uses  to  which 
carbon  sheets  can  be  put.  In  most  offices  there  are  many  other 
chances  for  saving  by  means  of  carbon  copies,  which  as  yet  are 
overlooked. 

Machines  for  Dictation 

The  dictating  machine  possesses  certain  advantages. 

It  is  always  ready ;  whether  one  gets  down  to  the  office  an 
hour  ahead  of  his  stenographic  force  or  prefers  to  dictate  after 
office  hours  or  at  home  in  the  evenings,  he  need  only  start  the 
machine  and  talk. 

The  machine  has  no  speed  limit.  The  man  who  dictates 
like  a  "whirlwind"  finds  no  brakes  set  upon  his  pace ;  the  man 
who  makes  long  stops  in  order  to  think  out  a  hard  letter  or  to 
hunt  some  necessary  data,  may  do  so  without  wasting  anyone 
else's  time. 


SHORT-CUTS  167 

The  accuracy  of  the  typed  matter  is  commonly  increased. 
There  is  many  a  sHp  between  what  the  dictator  says  and  the 
stenographer  types — sHght  inaccuracies  no  doubt,  but  fre- 
quently embarrassing.  The  wax  cylinder  records  faithfully 
what  is  entrusted  to  it  and  the  typist,  by  using  the  back  spacer, 
may  have  this  repeated  any  number  of  times. 

The  machine  also  frees  the  typist  from  interruptions. 
When  busy  with  filing,  typing,  or  other  duties,  she  is  not 
obliged  to  drop  them  upon  signal  that  her  employer  has 
thought  of  a  letter  or  memorandum  he  wants  to  get  off  his 
mind. 

Considerable  criticism  has  been  directed  toward  these  ma- 
chines, both  by  typists  and  dictators.  The  real  source  of 
these  criticisms  probably  lies  in  faulty  dictation.  The  man 
who  speaks  directly  into  the  mouthpiece  and  enunciates  his 
words  clearly,  turns  out  cylinders  which  a  typist  has  no  diffi- 
culty in  transcribing. 

The  Automatic  Correspondent 

Those  who  handle  a  large  volume  of  correspondence,  par- 
ticularly when  the  subject  matter  is  limited,  find  themselves 
day  after  day  going  over  pretty  much  the  same  ground. 
Orders,  complaints,  collections,  sales  talk — each  of  these  topics 
constitutes  a  class  within  which  exists  a  certain  sameness  and 
the  letters  to  a  hundred  men  in  this  class  are  often  practically 
identical.  When  the  tongue  slips  into  well-worn  combinations 
of  words  and  the  task  of  dictation  becomes  monotonous,  it  is 
a  signal  that  short-cuts  are  overdue. 

Many  practical  schemes  are  available  to  solve  this  prob- 
lem. These  are  occasionally  subjected  to  criticism  by  those 
who  claim  the  letters  produced  are  inferior.  But  what  con- 
stitutes a  good  letter?  Is  it  not,  after  all,  one  that  produces 
the  desired  effect?  Does  it  give  the  inquirer  the  information 
he  wants?     Does  it  convince  the  prospect  he  needs  the  prod- 


l68  THE  DISPATCH   OF  A  DAY'S  WORK 

uct?  Does  it  get  the  money  and  yet  retain  the  customer's 
good-will?  Should  a  form  letter  with  a  fill-in  prove  able  to 
do  these  things,  it  constitutes  a  good  letter  and  hence  is  worth 
using.  As  a  matter  of  practice,  the  man  who  analyzes  his  cor- 
respondence can  frequently,  without  any  loss  in  effectiveness, 
turn  over  a  hundred  names  to  a  typist  with  the  single  state- 
ment, "Send  them  letter  number  4." 

In  an  Eastern  stove  factory  the  overworked  head  of  the 
correspondence  department  was  prevailed  upon  to  use  these 
form  paragraphs,  and  the  account  of  his  experience  will  sug- 
gest how  they  may  be  adapted  to  any  business.  As  a  start, 
the  typists  were  instructed  to  make  an  extra  carbon  copy  of 
every  letter  sent  out  during  the  next  two  weeks.  The  follow- 
ing subject  outline  was  then  drawn  up : 

Sales :    1-199 

Openers    i-  24 

Description  of  stoves  25-  49 

Testimonials    50-  74 

Price 75-  99 

Service  department  100-124 

How  to  order  125-149 

Miscellaneous    150-174 

Closers    I75-I99 

Orders:  200-399 

Openers    200-224 

Filled  as  ordered  225-249 

Filled  vi^ith  changes  250-274 

Cannot  fill  275-299 

Sending  bill    300-324 

Miscellaneous    325-374 

Closers    375-399 

Complaints:  400-599 

Openers    400-424 

Goods  not  received  425-449 

Wrong  goods  sent 450-474 

Damaged   in   transit  475-499 


SHORT-CUTS 


169 


Dissatisfied   with   goods   500-524 

Bill    incorrect    525-549 

Miscellaneous    550-574 

Closers    575-600 

The  carbon  copies  were  classified  under  the  foregoing  sub- 
ject headings  and  then  cut  up  into  paragraphs  and  sorted  into 
piles  according  to  the  outline.  These  piles  were  next  taken 
up  in  order,  all  paragraphs  judged  of  poor  quality  excluded, 
and  the  remainder  revised  with  care.  The  quality  paragraphs, 
after  being  numbered  consecutively  in  each  class  and  copied, 
were  bound  in  a  loose-leaf  binder  and  indexed.  It  may  be 
well  to  add  that  in  copying,  paragraphs  of  two  separate  classes 
were  never  placed  on  the  same  sheet  since  this  would  have 
been  confusing  when  it  came  to  planning  the  index, 

A  customer  from  up-state,  let  us  say,  writes  in  a  long  letter 
of  complaint  which  boiled  down  means  that  he  has  received 
the  wrong  goods.  The  correspondent  consults  his  form  para- 
graphs a  moment,  jots  a  few  figures  upon  a  small  card,  clips 
this  card  to  the  customer's  letter,  and  tosses  it  into  the  typist's 
tray.     His  part  is  done. 

The  customer,  however,  receives  an  excellent  four-para- 
graph letter,  which  adjusts  the  matter  to  his  satisfaction,  and 
he  is  not  at  all  concerned  with  the  manufacturer's  form  para- 
graph system. 

The  use  of  form  paragraphs  offers  certain  practical  ad- 
vantages : 

Speed.  The  correspondent  can  dispose  of  his  letters  more 
rapidly;  the  typist  can  transcribe  faster. 

Low  Cost.  The  speed  with  which  letters  are  produced 
and  the  fact  that  a  typist  may  be  substituted  for  a  first-class 
stenographer  lowers  the  cost  per  page.     (See  Figure  21.) 

Accuracy.  The  slips  which  creep  in  as  one  dictates,  and 
the  errors  made  as  the  stenographer  transcribes  from  notes 
are  both  reduced. 


I70 


THE  DISPATCH   OF  A  DAY'S  WORK 


Order 

Para- 
graphs 

Insertions  ■ 

I 

15 

23d 

2 

400 

3 
4 

471 
581 

Mr.    Thomas 

5 
6 

7 
8 

9 

10 

Enclosures 

Checks  for  Specials 

Figure  21.     Card  Used  to  Save  Time  of  Dictating 

This  small  card,  clipped  to  the  letter,  represents  the  answer  as  dictated  by  the  auto- 
matic   correspondent.      The    typist    inserts    the    special    items    specified    in    the 
column  at  the  right,  in  this  way  increasing  the  flexibility  of  the  system. 


Quality.  The  paragraphs  are  well  written,  interesting, 
convincing,  far  superior  to  the  grade  of  work  usually  turned 
out  by  the  correspondent  because  they  represent  his  one  best 
way  of  putting  a  point.  The  sales  argument,  the  acknowledg- 
ment of  an  order,  or  the  reply  to  a  complaint,  once  it  has  been 
standardized  and  reduced  to  form  paragraphs,  becomes  inde- 
pendent of  moods.  An  attack  of  indigestion  or  some  hot 
altercation  with  a  competitor  does  not  disturb  the  per- 
suasiveness of  the  selling  talk  nor  the  smooth  diplomacy  of 
the  collection  appeal  when  these  repose  in  a  correspondent's 
manual. 

Freedom  from  Drudgery.     There  is  no  merit  in  chaining 


SHORT-CUTS 


171 


a  high-class  mind  to  the  drudgery  of  grinding  out  the  same 
monotonous  phrases  day  after  day.  If  freed  from  such  rou- 
tine through  the  use  of  form  paragraphs,  the  correspondent 
is  more  able  to  give  special  letters  the  hard,  concentrated 
thought  they  deserve. 

Flexibility.  When  the  stock  of  form  paragraphs  has  at- 
tained the  degree  of  completeness  to  which  it  appears  feasible 
to  extend  it,  the  man  who  may  have  commenced  the  use  of  this 
system  somewhat  skeptically  will  be  agreeably  surprised  at  the 
facility  with  which  through  its  use  the  most  varied  letters  can 
be  prepared.  Moreover,  a  single  paragraph  can  often  be  made 
to  cover  a  number  of  cases,  and  in  a  distinctly  individual  way, 
by  leaving  blank  a  space  for  the  date,  the  name  of  the  article, 
its  price,  size,  or  color,  the  name  of  the  prospect,  etc.  Such 
items  are  noted  on  the  card  at  the  time  of  dictating  (See  Figure 
21),  and  filled  in  by  the  typist.  Form  paragraphs  may  also  be 
interspersed  at  will  with  paragraphs  which  are  dictated, 
solely  for  the  letter  at  hand.  This  plan  need  cause  no 
confusion  whether  one  uses  a  dictating  machine  or  employs  a 
stenographer. 

It  is  true  that  for  the  executive's  correspondence  the  form 
letter  usually  proves  inadvisable,  yet  the  principle  upon  which 
it  is  based — a  standardized  communication — does  apply  with 
much  force.  Again  and  again  several  persons  or  firms  are 
written  concerning  a  certain  subject  in  practically  the  same 
terms.  What  is  in  reality  a  form  letter  can  be  used  if,  after 
exercising  care  in  dictating  the  first  letter,  the  writer  hands 
the  stenographer  the  name  and  address  cards  of  the  remaining 
firms  with  the  remark,  ''The  same  letter  for  these."  The 
recipients  of  these  letters  concern  themselves  solely  with  the 
product  laid  before  them.     Is  it  a  good  letter? 

Form  paragraphs  unmodified  will  not,  of  course,  serve  for 
all  letters,  yet  it  requires  only  an  analysis  of  his  correspond- 
ence to  convince  the  average  man  that  the  percentage  of  it 


1^2  THE  DISPATCH  OF  A  DAY'S  WORK 

which  can  be  handled,  and  well  handled,  by  form  paragraphs 
is  larger  than  he  first  suspected. 

lOo  Per  Cent  Efficiency 

The  foregoing  suggestions  illustrate  in  only  a  limited  way 
the  many  short-cuts  which  the  man  intent  upon  the  prompt 
dispatch  of  his  duties  will  work  out  for  himself.  His  atten- 
tion once  directed  into  the  short-cut  channel,  he  will  constantly 
speed  up  and  eventually,  as  his  "dispatch"  efficiency  ap- 
proaches lOO  per  cent,  surprise  even  himself  by  the  celerity 
with  which  he  moves  through  the  day's  routine. 

In  this  respect  his  problem  is  similar  in  kind  to  that  of  a 
city  fire  department  in  cutting  down  the  time  elapsing  between 
the  receipt  of  an  alarm  and  the  departure  of  the  firemen.  The 
experiments  conducted  by  such  a  department  convey  a  telling 
message  to  business  men  complaining  of  "no  time"  while  in- 
different to  short-cuts. 

"At  first,"  says  R.  T.  Kent,  "the  horses  stood  in  their 
stalls  with  their  harness  on  them.  The  hitching  of  the  horses 
required  the  fastening  of  several  buckles.  Some  one  then 
invented  the  drop  harness,  now  universally  used,  and  the  num- 
ber of  motions  in  hitching  a  horse  was  reduced  to  three — 
snapping  the  collar  round  his  neck,  and  the  fastening  of  the 
two  reins  to  his  bridle  by  bit  snaps. 

"Later  the  horses  were  moved  from  the  rear  of  the  house 
to  a  point  alongside  the  engine,  so  that  they  had  only  to  travel 
a  matter  of  a  few  feet  to  be  in  position  under  the  harness. 
Some  one  else  then  invented  a  device  which  released  the  horses 
from  their  stalls  automatically  with  the  sounding  of  the  alarm 
on  the  fire-house  gong,  affecting  a  further  saving  in  time  and 
motion. 

'Instead  of  having  the  firemen  descend  stairs  from  their 
sleeping  quarters,  the  sliding  pole  was  thought  of,  which  elimi- 
nated a  great  number  of  individual  motions  and  saved  many 


SHORT-CUTS 


173 


seconds.  And  so  on,  as  one  device  after  another  was  per- 
fected which  saved  motions,  and  thereby  time,  it  was  adopted, 
until  now  the  'motion  efficiency'  in  a  fire  house  is  one  hundred 
per  cent.  It  is  useless  to  improve  it  further,  because  it  has 
reached  a  point  where  the  company  is  ready  to  start  to  a  fire 
before  it  has  received  the  number  of  the  box." 

The  Fire  Department  a  Personal  Incentive 

The  various  short-cuts  of  a  fire  department  appeal  to  us 
because  a  burning  building  impresses  everyone  dramatically 
with  the  value  of  time.  The  lurid  flames,  the  clanging  en- 
gines, the  shower  of  sparks,  the  hoarse  shouts  of  firemen,  all 
urge  speed.  Yet  in  a  private  office  the  sands  of  life  are 
counted  out,  and  here  as  elsewhere,  used  or  unused,  they  re- 
turn no  more.  In  its  own  way  quite  as  dramatic  as  the  burn- 
ing of  a  building  into  ashes,  this  twenty- four  hours  a  day 
passes  through  our  hands  and  then  fades  into  the  great  be- 
yond. "Dost  thou  love  life?  Then  do  not  squander  time, 
for  that  is  the  stuff  life  is  made  of." 

The  fact  that  short-cuts  will  save  time,  therefore,  should 
assure  their  employment.  The  benefits  are  tangible,  realiz- 
able. The  adoption  of  the  short-cut  itself  marks  an  increase 
in  efficiency  and  the  time  saved  when  capitalized  is  a  hand- 
some reward. 

The  Daily  Use  of  Short-Cuts 

To  seek  short-cuts  is  a  worth-while  principle.  The  execu- 
tive who  adopts  this  principle 

1.  Emphasizes  results,  not  motions. 

2.  Plans  his  work,  then  works  his  plan. 

3.  Keeps  alert  for  time-saving  schemes. 

4.  Gives  a  task  the  time  it  is  worth,  then  gets  it  done  on 

time. 

5.  Concentrates,  decides,  and  dispatches. 


174  THE  DISPATCH  OF  A  DAY'S  WORK 

Exercises 

Short-Cuts  in  Use 

In  order  to  secure  the  benefits  which  await  you  in  short-cuts,  check 
through  the  foregoing  list,  raising  in  each  case  these  questions: 

Do  I  now  make  use  of  this  short-cut?  Compared  with  my  former 
results,  how  much  time  approximately  has  its  adoption  saved  me 
daily  ? 

In  case  this  particular  short-cut  is  not  now  being  used,  should  it 
be  used  ?  Compared  with  my  present  methods,  how  much  time  approxi' 
mately  would  its  adoption  save  me  daily? 

What  short-cuts  do  I  now  use  which  do  not  appear  upon  this  list? 
What  is  their  approximate  time  saving? 

What  additional  short-cuts  can  I  profitably  devise  for  myself? 

This  exercise  will  provide  the  specific  plans  for  driving  directly  to 
the  goal;  for  making  every  moment  and  every  motion  result-getting. 

A  Test  of  Progress 

Do  you  know  at  what  speed  you  can  really  work,  if  necessary? 
As  a  test,  try  this  exercise  once  in  a  while.  Complete  a  day's  work 
in  your  usual  time,  recording  the  various  tasks  undertaken  together 
with  the  time  when  each  was  commenced  and  completed.  File  this 
record  away  for  a  month,  or  two  months,  or  whatever  time  you  like. 

Some  day  when  your  schedule  can  be  arranged  to  duplicate  the 
former  day's  work,  use  its  records  as  today's  quota.  Concentrate, 
decide,  dispatch ;  let  finished  tasks  emerge  from  your  hands  with  all 
possible  speed  and  precision. 

Such  a  test  when  carried  out  properly  reveals  this  profound  truth, 
that  within  yourself  are  reservoirs  of  power  commonly  unused.  By 
rousing  these  latent  forces,  personality  mounts  above  its  old  self  and 
accomplishment  attains  a  new  maximum.  The  efficient  man — my- 
self— thus  enters  into  his  true  heritage. 

The  Short-Cut  Point  of  View 

The  matter  of  short-cuts  has  a  deeper  significance  than  simply  the 
clipping  of  five  minutes  here,  fifteen  minutes  there,  throughout  the 
day,  valuable  as  that  accomplishment  may  be.  It  means,  whatever 
the  object,  its  attainment  with  minimum  wastage  of  time  and  effort, 
a  proceeding  toward  it  with  a  maximum  of  effectiveness. 

This  deeper  significance  of  short-cuts  is  indicated  in  the  account 
of  five  salesmen  engaged  in  the  field  selling  of  a  specialty  whose 
records  have  been  compiled  in  chart  9.  During  the  twenty-four 
days,  D  had  called  upon  300  prospects;  A  upon  only  iii.     But  A, 


SHORT-CUTS 


175 


who  used  the  telephone  intensively  in  the  making  of  appointments, 
got  in  a  full  presentation  once  out  of  every  two  calls  made,  whereas 
D  succeeded  in  only  one  case  out  of  ten  in  presenting  his  full  sales 
argument. 


Item 

Salesman 

A 

B 

C 

D 

E 

Total  Calls   

III 
10 

55 

4.6 
2.2 

245 
41 
71 

10.2 
2.9 

103 
51 
43 

4.2 

1-7 

300 
41 
30 

12. 5 
1.2 

i6s 

49 
6.8 
2.0 

Partial  Presentations  Only. . . 
Full  Presentations   

Calls  Per  Day  Averaged 

Full    Presentations    Per    Day 
Averaged     

Total  Orders  Secured 

Average     Full     Presentations 
Per   Order 

22 

2.5 

48 
1:51 

21 
3-3 

5« 

2:50 

19 
2.2 

61 

1:25 

7 
4.2 

69 
1:26 

3 
16.3 

53 
1:48 

Average  Time  Per  Full  Pre- 
sentation   (Minutes) 

Average  Time  Spent  Daily  in 
Full    Presentations    (Hours 
and   Minutes) 

Total   Earnings 

Earnings  Per  Hour  Spent  in 
Full  Presentations 

$550 
$12.36 

$525 
$7.70 

$475 
$10.80 

$175 
$5.10 

$75 
$1.74 

Test    Chart   9.      The    Results   of  Twenty-four  Working  Days   Compiled 
from  the  Records  of  Five  Specialty  Salesmen 


The  quality  of  the  full  presentation  made  also  must  have  differed 
considerably,  judged  by  the  very  matter-of-fact  test — the  average 
number  of  full  presentations  per  order  secured.  C  showed  himself 
here  of  high  grade,  closing  successfully  almost  every  other  man  to 
whom  he  had  presented  his  proposition ;  E  was  here  especially  weak, 
being  quite  ready  to  accept,  it  seems,  anything  in  the  way  of  excuses 
the  prospect  had  to  offer.  It  does  not  suffice  merely  to  have  things 
under  way;  what  counts  is  the  work  which  is  finished — the  name  on 
the  dotted  line. 

These  five  salesmen,  as  they  faced  each  new  day,  had  certain  hours 
and  certain  efforts  which  they  sought  to  turn  into  money  returns. 
The  hours  when  real  salesmanship  was  under  way — the  time  devoted 
to  full  presentations — were  whittled  down  in  their  respective  cases 


176 


THE  DISPATCH  OF  A  DAY'S  WORK 


to  1:51,  2:50,  1:25,  1:26,  1:48;  the  use  of  this  time  resulted  in 
earnings  per  hour,  varying  from  $1.74  to  $12.36. 

The  personal  manager  in  his  list  of  tasks  scheduled  for  attention 
has,  as  it  were,  so  many  prospects  upon  whom  to  call.  Shall  he,  in 
common  with  certain  of  these  five  salesmen,  be  led  off  into  winding 
paths  and  be  put  off  with  subtle  excuses  for  non-performance;  or 
shall  he  employ  his  time  and  effort  in  the  direct  presence  of  these 
prospects  under  those  conditions  of  concentration,  decision,  and  dis- 
patch which  encourage  full  presentations  and  a  strong  close? 


CHAPTER  X 

EFFICIENCY  HABITS    ■ 

There  is  no  more  miserable  human  being  than  one  in  whom 
nothing  is  habitual. — William  James. 

Henry  Ford  and  The  Radiator  Cap 

Habit  has  come  to  be  almost  a  term  of  reproach  in  modern 
business.  It  is  associated  in  popular  thought  with  defective 
will  or  with  imperfect  intelligence.  We  speak  of  a  man's  bad 
habits,  meaning  practices  of  personal  indulgence  more  or  less 
questionable  in  themselves  which  impair  his  effective  command 
of  such  powers  as  he  has  developed.  Or  we  speak  of  his 
business  life  as  ruled  by  habit,  meaning  usually  that  his  mind 
is  no  longer  active,  that  he  is  working  mechanically  and 
ineffectively,  or,  in  brief,  as  somewhat  of  an  "old  fogy." 

This,  however,  is  only  a  part  of  the  matter,  and  the  nega- 
tive part  at  that.  The  other  side,  that  which  gets  at  the  real 
nature  of  habit,  is  revealed  in  a  story  told  of  Henry  Ford, 
who  in  transforming  automobile  manufacture  from  a  *'splen- 
did  adventure"  into  a  process  almost  as  certain  as  the  tides, 
has  taught  us  all  the  lesson  of  standardization  and  habit — and 
incidentally  amassed  millions  of  dollars  as  part  of  his  personal 
reward. 

A  prominent  consulting  engineer  once  spent  a  day  with 
Mr.  Ford  to  discuss  certain  engineering  problems.  He  noticed 
that  during  every  spare  moment  of  the  morning  Mr.  Ford 
kept  taking  from  his  pocket  a  radiator  cap  and  was  apparently 
engaged  in  some  calculation  regarding  it.  On  inquiry  he 
learned  that  the  part  was  of  brass  and  cost  half  a  cent  too 
much  to  build.     He  suggested  threading  it  in  a  slightly  dif- 

177 


178  THE  DISPATCH  OF  A  DAY'S  WORK 

ferent  way,  to  which  Mr.  Ford  repHed:  "Yes,  that  would 
be  cheaper,  but  whenever  the  water  boiled  it  would  get  hot 
and  bind."  To  several  other  suggestions  which  he  ventured, 
Mr.  Ford  immediately  pointed  out  some  difficulty,  where- 
upon he  realized  that  his  host  had  studied  *he  problems  in- 
volved far  beyond  any  suggestions  he  might  be  able  to  make. 
During  the  afternoon  Mr.  Ford  continued  to  give  his  atten- 
tion at  odd  moments  to  the  cap,  devoting  several  hours  to  its 
consideration.  That  evening  the  engineer  remarked :  *T 
cannot  understand  how  this  small  part,  costing  two  or  three 
cents  at  the  most,  can  be  worth  so  much  of  your  time.  It  is 
only  a  fourth  or  half  a  cent  that  you  can  save  in  each  piece." 
"Yes,  that  is  true,"  Mr.  Ford  replied,  "but  I  am  not  think- 
ing of  one  radiator  cap.  We  shall  need  one  on  each  of  185,- 
000  cars  this  year,  besides  25,000  for  repairs.  That  makes 
210,000  for  this  year.  We  will  make  at  least  50  per  cent  more 
cars  next  year.  There,  is  a  saving  of  $2,500,  and  when  we  get 
it  settled  it  will  be  right  for  the  next  twenty  years." 

Justifiable  Expenditure 

The  point  of  this  story  comes  at  the  end.  "Planning" 
that  cap  cost  some  hours,  perhaps,  of  the  time  of  a  highly 
expensive  man — an  extravagance  taken  by  itself.  But  the 
expenditure  was  justifiable  because  once  the  operation  was 
worked  out  it  could  be  made  a  matter  of  indefinite  repetition 
at  a  cost  virtually  negligible.  Before  it  was  thoroughly  stand- 
ardized, there  was  need  from  time  to  time  of  tinkering  and 
rearrangement  by  other  upper  officials — which  was  expensive. 
Now  it  was  "right  for  twenty  years"  and  no  one  had  to  think 
about  it. 

Habit  does  essentially  the  same  thing  for  the  individual's 
work,  for  the  executive's  personal  routine.  It  transforms 
what  is  scientifically  accurate  into  what  is  commercially  prac- 
ticable. 


EFFICIENCY  HABITS 


179 


In  reality,  therefore,  habit  represents  the  essential  part  of 
standardization.  Standardization,  we  have  seen,  includes  the 
planning  of  a  process,  etc.,  perhaps  at  the  cost  of  much  time, 
thought,  money;  and  also  dispatching  it — carrying  through  the 
operations  determined  upon — perhaps  at  the  cost  of  intense 
effort  of  will.  But  there  must  follow  repetition  of  the  new 
activity  without  change  an  indefinite  number  of  times — that 
is  to  say,  the  process  must  become  automatic,  unforgettable,  a 
habit. 

The  third  stage  is  of  vital  importance  to  the  practical 
man.  Without  it  standardization  would  be  merely  a  pompous 
and  expensive  way  of  doing  what  could  be  done  perhaps  as 
well  by  one  swift  guess.  With  it  the  improved  method,  the 
process  which  has  been  proved  right  becomes  a  permanent 
possession — more  efficient  and  more  profitable  with  every 
repetition.  The  profit  from  a  standardized  operation  does 
not  begin  to  come  until  the  operation  has  become  a  matter  of 
course — a  habit.  After  that  point  the  costs  go  steadily  down 
and  the  profits  increase. 

The  Nervous  System  a  Business  Organization 

Consider  a  little  the  way  in  which  the  human  mind  works, 
or  rather  the  structure  and  functions  of  the  nervous  system  on 
which  the  working  of  the  mind  depends.  Formidable  psy- 
chological discussions  in  highly  technical  language  may  well 
leave  the  business  man's  mind  confused  and  impatient  with 
the  whole  subject.  Yet  psychology  means  nothing  more  than 
knowing  how  the  mind  works.  Understanding  its  principles 
enables  one  to  get  better  service  from  his  own  mind — his 
nervous  apparatus. 

The  nervous  system,  as  we  call  it,  extends  throughout  the 
body.  (See  Figure  22.)  Its  various  parts  are  composed  of 
tiny  plastic  cells,  which  strike  each  other  and  rebound  when 
messages — those  from  the  outside  are  called  sensations — are 


i8o 


THE  DISPATCH  OF  A  DAY'S  WORK 


passed  along.  Study  of  the  system  and  its  operation  will 
show  in  the  first  place  its  curious  resemblance  to  the  organiza- 
tion of  an  active  business  house,  with  subordinates,  sub- 
executives,  general  manager,  etc. 

The  first  impressions  or  sensations — messages — from  the 


Nerves  to 
back  of 
left  leg. 


Figure  22.     Brain  and  Spinal  Cord,  with  the  Thirty-one  Pairs 

of  Spinal  Nerves 

(Reproduced  from  Doty's  "Prompt  Aid  to  the  Injured,"  by  permission  of  D.  Appleton 

&  Company) 

outside  come  through  the  organs  of  sight,  taste,  smell,  feel- 
ing, and  hearing  to  the  nerves.  The  nerves  may  be  com- 
pared to  the  telephone  and  telegraph  wires,  the  railroads,  and 
the  mails,  which  keep  a  business  organization  in  touch  with 
its  materials  and  markets. 


EFFICIENCY  HABITS  l8i 

But  these  impressions  or  sensations  do  not  travel  very  far 
along  the  nerves  towards  headquarters  until  they  meet  a 
little  nerve  knot,  or  ganglion,  which  passes  upon  their  mes- 
sage. If  it  is  of  a  routine  sort  merely,  the  ganglion  decides  the 
matter  itself,  just  as  an  office  boy  might  under  similar  cir- 
cumstances. A  message  of  higher  sort  goes  on  by  the  gan- 
glion and  quickly  reaches  the  medulla  oblongata. 

The  medulla  oblongata  rests  at  the  top  of  the  spinal  cord, 
as  a  sort  of  clearing  house  for  automatic  and  semi-automatic 
actions.  While  it  is  of  higher  rank  than  the  myriad  ganglia, 
its  functions  are  very  much  the  same.  It  might  be  referred 
to  as  the  chief  of  the  routine  department.  Certain  messages 
and  orders  are  too  important  for  dispatch  by  the  medulla,  of 
course,  and  these  are  passed  on  to  the  cerebellum. 

The  cerebellum  is  the  ''little  brain"  lying  just  above  the 
medulla,  yet  still  far  back  and  low  in  the  brain  case  or  skull. 
It  has  charge  of  the  voluntary  muscles,  that  is,  over  those 
which  operate  under  the  direction  of  our  will.  The  beating 
of  the  heart  goes  on  whether  we  think  of  it  or  not,  but  when 
we  sign  a  contract  the  cerebellum  directs  the  muscles.  In 
general,  the  cerebellum  might  be  called  the  seat  of  the  action 
department. 

The  cerebrum,  crowning  the  nervous  system  both  in  size 
and  function,  acts  as  general  manager  in  the  nervous  organi- 
zation. It  fills  almost  all  the  brain  case.  Just  as  the  most  im- 
portant messages  and  orders  come  finally  to  the  general  man- 
ager, so  the  main  business  of  the  mind,  its  general  policy  so  to 
speak,  is  transacted  in  the  cerebrum. 

Habit  is  Standardized  Nerve  Action 

It  is  a  striking  feature  of  the  business  organization  of 
the  mind  that  work  is  constantly  being  shifted,  as  it  be- 
comes familiar,  from  the  higher  faculties  to  the  lower  ones. 
The  first  time  a  certain  action  is  performed,  such  as  braking 


i82  THE  DISPATCH  OF  A  DAY'S  WORK 

an  automobile,  so  great  is  the  difficulty  encountered  that  the 
general  manager  himself  must  take  a  hand  in  directing  the 
muscles.  Under  continued  repetition,  however,  the  nerve 
cells  shape  themselves  in  a  more  definite  order — the  action 
is  controlled  by  sub-officials — until  finally  a  habit  is  formed. 
As  the  motor  car  ahead  of  ours  stops,  we  put  pressure  on  the 
brake  without  in  the  least  disturbing  those  creative  business 
plans  our  cerebrum  may  be  shaping  up. 

This  process  by  which  actions  that  are  often  repeated 
come  to  be  automatic,  the  process  of  the  formation  of  habits, 
is  going  on  all  the  time.     It  is  regular  and  inevitable. 

The  Efficient  versus  the  Inefficient  Way 

The  efficient  man  keeps  the  big  things  in  mind,  as  we  have 
said,  but  he  also  keeps  his  mind  free  and  open  about  them — 
does  not  let  himself  form  habits  about  matters  of  great  im- 
portance. But  the  little  things  he  standardizes  according  to 
a  well-considered  plan. 

The  inefficient  man  does  not  reduce  to  habit  the  routine 
tasks  of  the  day.  The  writing  of  every  letter,  the  O  K'ing  of 
every  order,  the  use  of  particular  pencils  or  pens,  the  time  of 
going  out  to  lunch,  the  things  he  will  eat,  are  to  him  all  sub- 
jects of  express  volitional  deliberation.  His  mind  is  ever 
harassed  and  distracted,  and  the  reason  is  simple ;  the  general 
manager  is  doing  office  boy  work. 

Every  useful  action  possible,  such  as  ways  of  dressing, 
eating,  working,  in  short,  all  the  minor  details  of  existence, 
should  be  made  automatic  and  habitual.  All  such  matters 
can  then  be  turned  over  to  the  lower  nervous  systems  for 
attention,  leaving  the  general  manager  unfettered  to  transact 
the  main  business  of  life.  The  nervous  system  is  designed 
for  this  very  purpose  and  the  man  who  would  be  efficient 
takes  advantage  of  its  wonderfully  simple  yet  adequate  organi- 
zation. 


EFFICIENCY  HABITS  183 

The  insistence  in  former  chapters  upon  what  the  reader 
may  have  considered  small  matters,  is  here  explained.  The 
man  who  does  not  keep  the  clips  or  the  stamps  or  the  envel- 
opes in  certain  definite  places  has  to  call  in  the  higher  brain 
center  when  he  wants  to  find  one  of  them.  The  man  who 
does  not  "make  a  note  of  it,"  who  refuses  to  employ  a  secretary, 
who  will  not  use  a  filing  system,  also  is  insisting  that  the  gen- 
eral manager  do  all  the  work. 

Double  Waste 

There  is  another  side  to  the  matter.  It  is  doubly  waste- 
ful for  the  general  manager  to  do  office  boy  work :  he  is  kept 
from  doing  his  own  work  and  he  is  less  efficient  at  the  routine 
work  than  the  boy  is.  When  a  person  has  to  put  his  conscious 
will  upon  braking  the  automobile  he  will  not  do  it  nearly  so 
well  as  when  it  is  taken  care  of  by  the  automatic  centers. 
So  with  every  operation  in  life.  Practice  makes  perfect,  we 
say.  The  reason  is  that  with  practice  an  activity  is  taken 
over  by  the  lower  nerve  centers,  swift,  steady,  and  serene. 

In  the  mental  life  quite  as  truly  as  among  large  corpora- 
tions, there  is  need  for  both  general  manager  and  office  boy. 
But  neither  should  do  the  other's  work. 

Productive  Power  Capitalized 

The  various  plans  outlined  in  previous  chapters  at  times 
have  called  for  the  substitution  in  place  of  one's  familiar  rule- 
of-thumb  method  of  standards  more  or  less  new.  And  it  is 
true  that  this  demand  for  substitution  calls  into  action  the 
higher  brain  centers  and  for  the  time  being  is  inefficient.  But 
not  for  long.  The  new  habit  is  in  truth  an  investment  which 
once  made  will  pay  dividends  long  into  the  future.  "Prove 
all  things,"  said  the  Apostle  who  reached  every  rank  of  peo- 
ple, but  "hold  fast  that  which  is  good." 

Whoever  imbibes  deeply  in  his  nervous  tissues  the  habits 


l84  THE  DISPATCH  OF  A  DAY'S  WORK 

of  truthfulness,  cleanliness,  industry,  kindness,  appreciation, 
moral  integrity  and  hope,  later  lives  upon  these  habits  without 
price  and  without  effort.  Likewise  he  who  by  the  sweat  of  his 
brow  raises  himself  to  a  new  level  of  personal  efficiency  hence- 
forth shall  receive  dividends  from  the  most  gilt-edge  of  securi- 
ties— his  own  productive  power  capitalized  as  efficiency 
habits. 

In  making  such  habits  a  man's  own,  there  are  certain  sim- 
ple rules  which  if  followed  will  be  of  great  assistance.  Some 
of  these  rules  are  discussed  on  the  following  pages. 

Habits  Inevitable;  Which  Kind? 

In  thinking  over  habits  it  is  well  to  recognize  that  the 
nervous  system  as  we  grow  older  becomes  less  plastic. 
"Already  at  the  age  of  twenty-five,"  says  William  James, 
"you  see  the  professional  mannerism  settling  down  on  the 
young  commercial  traveler,  on  the  young  doctor,  on  the 
young  minister,  on  the  young  counselor-at-law.  You  see  the 
little  lines  of  cleavage  running  through  the  character,  the 
tricks  of  thought,  the  prejudices,  the  ways  of  the  'shop,'  in 
a  word,  from  which  the  man  can  by-and-by  no  more  escape 
than  his  coat-sleeve  can  suddenly  fall  into  a  new  set  of  folds. 
On  the  whole,  it  is  best  he  should  not  escape.  It  is  well  for 
the  world  that  in  most  of  us,  by  the  age  of  thirty,  the  char- 
acter has  set  like  plaster,  and  will  never  soften  again," 

As  far-sighted  personal  managers  intent  upon  developing 
effectiveness  in  the  highest  degree,  into  what  kinds  of  produc- 
ing methods  shall  we  allow  our  nervous  system  gradually  to 
harden?  Into  methods  hit  upon  by  chance?  Then  the  attain- 
ment of  our  goal  being  left  to  accident,  we  are  as  mariners 
without  compass  ever  on  the  verge  of  shipwreck. 

Right  methods  are  not  the  result  of  chance,  but  the  prod- 
uct of  careful  analysis  and  constructive  thought.  These  right 
methods  are  called  standards,  the  summum  bonum  in  all  at- 


EFFICIENCY  HABITS  185 

tempts  to  attain  efficiency  and  the  real  goal  in  the  formation 
of  habits. 

Standardisation  is  the  first  step  in  the  formation  of  habits. 

Thought  Followed  by  Action 

The  standard  must  not  remain  merely  a  thought,  an  ab- 
straction over  which  in  the  mental  world  we  can  sentimentalize 
and  dream  ourselves  into  the  fond  notion  that  somewhere, 
sometime,  we  really  shall  become  efficient.  "Hell  is  paved 
with  good  intentions."  The  efficient  man  sets  about  attaining 
his  effectiveness  now,  and  he  attacks  the  first  problem  feasible 
no  matter  how  small;  he  does  not  wait  for  the  new  year 
with  its  resolutions,  nor  until  he  be  promoted  to  his  present 
superior's  desk. 

"The  actual  presence  of  the  practical  opportunity,"  says 
Bahnsen,  "alone  furnishes  the  fulcrum  upon  which  the  lever 
can  rest,  by  means  of  which  the  moral  will  may  multiply  its 
strength,  and  raise  itself  aloft.  He  who  has  no  solid  ground 
to  press  against  will  never  get  beyond  the  stage  of  empty  ges- 
ture-making." 

When  the  resolution  to  accomplish  seizes  you,  when  the 
glow  of  inspiration  permeates  your  being  through  and  through, 
reach  for  a  sheet  of  paper  and  write  down  at  least  one  specific, 
concrete  order  to  yourself.  Impractical,  nerveless  senti- 
mentalism,  spineless  indecision  will  then  be  avoided,  and  your 
fine  resolution  will  begin  to  bear  practical  fruit. 

The  habits  you  aspire  to  gain  are  reached  not  by  moralis- 
ing or  theorizing  but  through  concrete  acts. 

Keeping  Fully  "Sold"  On  a  Subject 

Salesmen  are  all  familiar  with  the  prospect  who  is 
about  to  sign  on  the  dotted  line,  then  suddenly  draws  back. 
Sometimes  he  signs  but  changes  his  mind  and  cancels  the 
order  before  the  salesman  can  get  away;  sometimes  he  wires 


l86  THE  DISPATCH  OF  A  DAY'S  WORK 

the  house  the  cancellation,  sometimes  he  refuses  the  ship- 
ment, sometimes  he  returns  the  goods.  In  all  these  cases 
the  salesman  explains  the  difficulty  by  saying  the  prospect 
was  not  fully  *'sold." 

It  is  the  same  in  forming  habits;  resolution  is  necessary, 
you  must  fully  "sell"  yourself  on  the  new  habit.  "Accumulate 
all  the  possible  circumstances  which  shall  re-enforce  the  right 
motives,"  says  William  James,  "put  yourself  assiduously  in 
conditions  that  encourage  the  new  way;  make  engagements 
incompatible  with  the  old;  take  a  public  pledge,  if  the  case 
allows;  in  short,  envelop  your  resolution  with  every  aid  you 
know.  This  will  give  your  new  beginning  such  a  momentum 
that  the  temptation  to  break  down  will  not  occur  so  soon  as  it 
otherwise  might;  and  every  day  during  which  a  breakdown  is 
postponed  adds  to  the  chances  of  its  not  occurring  at  all." 

Enter  into  the  new  habit  with  every  possible  incentive  and 
resolution. 

The  Road  to  Full  Efficiency 

The  best  of  incentives  in  the  formation  of  habits  is  suc- 
cess. The  man  who  dispatches  an  extraordinary  day's  work 
is  thereby  encouraged  to  surpass  himself  still  further;  the  man 
who  exceeds  a  hard  schedule  feels  confident  of  his  power  to 
negotiate  a  harder  schedule ;  success  has  encouraged  him. 

Success,  however,  is  precisely  what  the  efficiency  enthusiast 
is  most  likely  to  deny  himself.  With  a  sudden  realization  of 
the  heights  to  which  he  may  attain,  he  draws  up  an  impossible 
plan.  Failure  is  inevitable,  a  gruesome  failure,  for  the  wicked 
habits  just  swept  out  return  pell-mell,  multiplied  in  number 
like  the  seven  devils  of  old.  The  aspirant  for  efficiency  has 
been  ruined  by  attempting  too  much. 

In  acquiring  habits  we  are  in  the  presence  of  two  hostile 
powers :  one  the  new  standard,  the  other  the  old  rule-of -thumb 
method.     *'It  is  necessary,  above  all  things,  in  such  a  situa- 


EFFICIENCY  HABITS  187 

tion,"  says  Professor  Bain,  "never  to  lose  a  battle.  Every  gain 
on  the  wrong  side  undoes  the  effect  of  many  conquests  on  the 
right.  The  essential  precaution,  therefore,  is  so  to  regulate 
the  two  opposing  powers  that  the  one  may  have  a  series  of 
uninterrupted  successes,  until  repetition  has  fortified  it  to  such 
a  degree  as  to  enable  it  to  cope  with  the  opposition,  under 
any  circumstances.  This  is  theoretically  the  best  career  of 
mental  progress." 

The  path  is  clear.  In  moving  toward  personal  effective- 
ness beware  of  undertaking  too  much  at  the  start.  The  goal 
worth  while  is  not  to  be  attained  in  one  day.  Introduce  one 
method,  then  another;  mend  your  ways  day  by  day.  The 
brain  cells  are  plastic  and  subject  to  modification,  but  they  are 
no  mushroom  growth  and  cannot  be  reshaped  over  night. 
Proceed  steadily  though  slowly,  allow  yourself  to  succeed 
again  and  again  as  you  advance.  While  the  full  efficiency  de- 
sired is  a  matter  of  years,  not  days,  each  time  a  thing  is  done 
well  the  next  time  it  is  made  easier. 

Suffer  no  exception  until  the  nczv  habit  is  securely  rooted 
in  the  nervous  system. 

The  Influence  of  Habit  Upon  Creative  Work 

Whatever  aversion  the  business  man  has  to  forming  habits 
is  commonly  found  upon  investigation  to  be  due  to  a  fear  that 
once  bound  by  habit  he  may  degenerate  into  old-fog}nsm  and 
lose  his  power  to  do  creative  work.  To  a  certain  extent  this 
fear  is  justified.  A  habit  unchecked  may  in  the  end  assert 
mastery  and,  as  is  often  seen  among  older  men,  lead  its  once 
brilliant  victim  to  a  treadmill  existence.  Yet  after  all  the 
danger  is  much  the  same  when  an  office  boy  is  engaged;  he, 
too,  if  unchecked  might  oust  the  general  manager.  The 
remedy,  however,  is  certainly  not  to  dispense  with  office  boys, 
but  simply  to  exercise  discipline  over  them.  When  this  is 
done,  the  habits,  over  which  in  the  beginning  we  have  labored, 


i88  THE  DISPATCH  OF  A  DAY'S  WORK 

are  transformed  into  faithful  subordinates,  ever  on  call,  ready 
to  serve.  System  then  exists  in  the  man,  embedded  in  his 
nervous  tissues. 

What  has  this  result  to  do  with  our  all-round  executive 
effectiveness?  Asked  to  make  a  rough  classification  of  his 
activities,  the  business  man  is  likely  to  respond,  "Routine  work 
and  creative  work,"  Going  further  he  will  probably  say, 
"Routine  work  takes  more  time  but  creative  work  is  more  im- 
portant." This  is  entirely  correct.  Creative  work  it  is  which 
enables  a  business  man  to  rise  to  his  full  genius  as  an  execu- 
tive— but  routine  work  must  be  done. 

It  is  precisely  the  systematization  of  this  never-ending 
routine  which  the  foregoing  chapters  have  had  in  view.  The 
big  things  in  business,  of  course,  do  not  center  in  details  well 
handled,  office  layouts,  private  secretaries,  short-cuts,  daily 
plans  and  schedules;  nevertheless,  because  they  do  care  for 
his  routine,  the  executive's  personality  is  left  unhampered  to 
grapple  with  larger  problems.  Through  their  use  he  attains 
real  freedom. 

The  system  with  which  we  have  been  concerned  to  this 
point  is  thus  the  foundation  of  creative  work. 


Exercises 

Standardizing  Good  Practice 

"Did  I  make  the  most  of  today?" 

It  is  a  good  question  to  raise.  The  man  ambitious  to  forge  ahead 
in  business  will  put  into  the  day's  work  his  best,  but,  while  this 
practically  guarantees  progress,  as  a  matter  of  safety  and  satisfac- 
tion to  himself  he  ought  to  check  his  results  occasionally. 

Such  a  taking  of  stock  let  us  make  at  this  point.  What  we  have 
sought  in  the  preceding  chapters  is  the  systematization  of  the  day's 
work,  and  we  now  desire  to  review  in  general  terms  our  situation. 
This  review  is  outlined  in  Test  Chart  lo. 

Suppose  we  grade  our  replies  to  the  nine  questions  on  the  basis 
that  standardization  equals  loo  per  cent.  Taking  up  each  question 
in  order  we  ask:  "My  present  situation  justifies  what  grade  with 


EFFICIENCY  HABITS 


189 


respect  to  this  question?"     When  all  the  replies  have  been  graded, 
add  the  percentages  and  divide  by  nine.     What  do  you  average? 

This  average  when  collected  in  the  square  underneath  the  outline 
represents  your  attainment  to  date.  The  raising  of  the  number 
steadily  until  it  approaches  100  per  cent  constitutes  our  next  prob- 
lem. We  vi^ish  to  solve  this  problem  because  the  average  represents 
our  attainments  capitalized  as  habits. 


Systematizing  My  Work 

I.  My  Job 

II.  My  Day's  Work 

III.   My   Methods 

For  what  duties  am 

What  things  have  I 

Does  each  duty  get 

I   held    responsi- 

to do  today? 

its   full  time,  and 

ble? 

How   much  time   is 

no  more? 

Which  of  these  are 

each  worth? 

What  obstacles  hin- 

most     important  ? 

der  me,  and  how- 
shall   I   deal   with 

In  what  order  shall 

them? 

Which    of    lesser 

I  attack  them? 

importance  ? 

Is  my  mind  system- 
atic   in    its    work, 

What     revision     of 

are      my      efforts 

my     job's     scope 

properly     or- 

would    make    me 

ganized? 

more   productive? 

Average Date   

Test  Chart  10.    The  Systematization  of  the  Day's  Work  is  Here  Reviewed 
in  Nine  General  Questions 


Benjamin  Franklin's  Method 

A  quaint  example  of  how  a  person  may  utilize  the  ratchet  prin- 
ciple of  control  through  habits  is  found  in  Benjamin  Franklin's 
"Autobiography,"  and  the  account  is  cited  here,  since  the  method 
adopted  by  Franklin  worked  successfully  in  a  field  where  definite 
results  are  particularly  difficult  to  secure  and  record. 


igo 


THE  DISPATCH  OF  A  DAY'S  WORK 


"It  was  about  this  time,"  writes  Franklin,  "1  conceived  the  bold  and 
arduous  project  of  arriving  at  moral  perfection.  I  wished  to  live 
without  committing  any  fault  at  any  time;  I  would  conquer  all  that 
either  natural  inclination,  custom,  or  company  might  lead  me  into. 
As  I  knew,  or  thought  I  knew,  what  was  right  and  wrong,  I  did  not 
see  why  I  might  not  always  do  the  one  and  avoid  the  other.  But  I 
soon  found  I  had  undertaken  a  task  of  more  difficulty  than  I  had 
imagined.  While  my  care  was  employed  in  guarding  against  one 
fault,  I  was  often  surprised' by  another;  habit  took  the  advantage  of 
inattention;  inclination  was  sometimes  too  strong  for  reason.  I 
concluded,  at  length,  that  .  .  .  the  contrary  habits  must  be  broken, 
and  good  ones  acquired  and  established.  .  .  .  For  this  purpose  I 
therefore  contrived  the  following  method.  I  included  under  thirteen 
names  of  virtues  all  that  at  that  time  occurred  to  me  as  necessary 
or  desirable,  and  annexed  to  each  a  short  precept,  which  fully 
expressed  the  extent  I  gave  to  its  meaning. 

"These  names  of  virtues,  with  their  precepts,  were: 

"i.  Temperance.  Eat  not  to  dullness;  drink  not  to  elevation. 

"2.  Silence.  Speak  not  but  what  may  benefit  others  or  yourself; 
avoid  trifling  conversation. 

"3.  Order.  Let  all  your  things  have  their  places;  let  each  part  of 
your  business  have  its  time. 

"4.  Resolution.  Resolve  to  perform  what  you  ought ;  perform  with- 
out fail  what  you  resolve. 

"5.  Frugality.  Make  no  expense  but  to  do  good  to  others  or  your- 
self;  i.e.,  waste  nothing. 

"6.  Industry.  Lose  no  time;  be  always  employed  in  something 
useful;  cut  off  all  unnecessary  actions. 

"7.  Sincerity.  Use  no  hurtful  deceit;  think  innocently  and  justly; 
and,  if  you  speak,  speak  accordingly. 

"8.  Justice.  Wrong  none  by  doing  injuries,  or  omitting  the  bene- 
fits that  are  your  duty. 

"9.  Moderation.  Avoid  extremes;  forbear  resenting  injuries  so 
much  as  you  think  they  deserve. 

"10.  Cleanliness.  Tolerate  no  uncleanliness  in  body,  clothes,  or 
habitation. 

"11.  Tranquillity.  Be  not  disturbed  at  trifles,  or  at  accidents  com- 
mon or  unavoidable. 

"12.  Chastity. 

"13.  Humility. 

"My  intention  being  to  acquire  the  habitude  of  all  these  virtues, 
I  judged  it  would  be  well  not  to  distract  my  attention  by  attempting 
the  whole  at  once,  but  to  fix  it  on  one  of  them  at  a  time;  and,  when 


EFFICIENCY  HABITS 


191 


I  should  be  master  of  that,  then  to  proceed  to  another,  and  so  on,  till 
I  should  have  gone  through  the  thirteen.  .  .  . 

"I  made  a  little  book,  in  which  I  allotted  a  page  for  each  of  the 
virtues.  I  ruled  each  page  with  red  ink,  so  as  to  have  seven  col- 
umns, one  for  each  day  of  the  week,  marking  each  column  with  a 
letter  for  the  day.  I  crossed  these  columns  with  thirteen  red  Hnes, 
marking  the  beginning  of  each  line  with  the  first  letter  of  one  of 
the  virtues,  on  which  line,  and  in  its  proper  column,  I  might  mark, 
by  a  little  black  spot,  every  fault  I  found  upon  examination  to  have 
been  committed  respecting  that  virtue  upon  that  day. 

"I  determined  to  give  a  week's  strict  attention  to  each  of  the 
virtues  successively.  Thus,  in  the  first  week,  my  great  guard  was 
to  avoid  every  least  offense  against  temperance,  leaving  the  other 
virtues  to  their  ordinary  chance,  only  marking  every  evening  the 
faults  of  the  day.  Thus,  if  in  the  first  week  I  could  keep  my  first 
line,  marked  *T,'  clear  of  spots,  I  supposed  the  habit  of  that  vir- 
tue so  much  strengthened,  and  its  opposite  weakened,  that  I  might 
venture  extending  my  attention  to  include  the  next,  and  for  the 
following  week  keep  both  lines  clear  of  spots.  Proceeding  thus  to 
the  last,  I  could  go  through  a  course  complete  in  thirteen  weeks,  and 
four  courses  in  a  year.  And  like  him  who,  having  a  garden  to 
weed,  does  not  attempt  to  eradicate  all  the  bad  herbs  at  once,  which 
would  exceed  his  reach  and  his  strength,  but  works  on  one  of  the 
beds  at  a  time,  and,  having  accomplished  the  first,  proceeds  to  a 
second,  so  I  should  have,  I  hoped,  the  encouraging  pleasure  of  see- 
ing on  my  pages  the  progress  I  made  in  virtue,  by  clearing  suc- 
cessively my  lines  of  their  spots,  till  in  the  end,  by  a  number  of 
courses,  I  should  be  happy  in  viewing  a  clean  book,  after  a  thir- 
teen weeks'  daily  examination." 

Whatever  we  may  think  of  Franklin's  undertaking,  the  method 
itself  affords  a  good  object  lesson  in  personal  management.    Franklin: 

Set  for  himself  a  general  purpose. 

Analyzed  this  general  purpose  into  its  constituent  elements. 

Prepared  definite  plans,  with  written  instructions. 

Checked  his  progress  regularly. 

Few  problems  facing  the  executive,  hard  though  they  appear, 
are  able  to  withstand  such  a  systematic  assault. 

Applying  the  Principle 

Suppose  we  utilize  the  principles  here  exemplified,  applied  in  a 
simpler  form  to  the  problems  immediately  before  us. 

The  exercises  which  have  been  worked  through  in  connection 
with    preceding    chapters   will    have    revealed    various    possibilities. 


192 


THE  DISPATCH  OF  A  DAY'S  WORK 


among  which  we  may  now  select  the  choicest  yet  unrealized.  What 
we  wish  to  select  are  certain  possibilities  in  which  a  given  amount 
of  time  and  effort  is  able  to  effect  a  maximum  improvement.  Use 
Test  Chart  ii  for  recording  your  choices.  These  choices  finally 
we  proceed  to  realize  in  practice,  employing  for  this  purpose  the 
rules  of  habit  formation  discussed  in  the  present  chapter.  The 
check  marks  in  the  last  column  record  our  advance. 


Ten  Things  to  Do  in 
Attaining  Efficiency 

The  Proper  Way  to 

Do  Each  Is  as 

Follows 

Habits  I 
Shall 
Thus 
Form 

Habits 
Now    Es- 
tablished 

■ 

- 

Test  Chart  ii.     Capitalizing  Attainments  as  Habits 


PART  IV 
THE  THINKER  IN  BUSINESS 

He  who  hopes  for  success  must  organize,  prepare,  enlist 
method  and  science,  if  he  would  live  upon  the  high  plane 
which  business  has  now  reached. — A.  C.  Bartlett,  Presi- 
dent of  Hibbard,  Spencer,  Bartlett  and  Co. 

Keeping  a  little  ahead  of  conditions  is  one  of  the  secrets 
of  successful  business;  the  trailer  seldom  goes  very  far. — ^ 
Charles  M.  Schwab,  Chairman,  Bethlehem  Steel  Corpo- 
ration. 


1 


CHAPTER  XI 

INITIATIVE  AND  VISION 

Some  men  seem  to  have  a  golden  touch.  Everything  to 
which  they  turn  their  hand  yields  miraculously. — Frank  W. 
Taussig,  Harvard  University. 

Routine  and  Constructive  Thought 

The  aim  of  the  preceding  chapters  has  been  so  to  aid  in 
systematizing  the  day's  work  that  its  necessary  routine  may 
be  cleared  away  with  ease  and  dispatch.  While  this  act  in 
itself  is  an  attainment  much  to  be  desired,  its  most  important 
result  is  the  freeing  of  the  executive's  mind  for  constructive 
effort.  The  real  leader  in  business  is  the  man  who  thinks,  in- 
vestigates, weaves  new  plans,  and  looks  ahead. 

The  succeeding  chapters  deal  with  the  principles  and 
methods  through  which  this  constructive  effort  is  brought  into 
most  effective  operation.  The  problems  treated  are  diffi- 
cult because  they  concern  highly  complex  elements  in  human 
nature  and  are  vital  because  they  concern  the  continued  life 
and  growth  of  the  business  or  department  of  business  over 
which  the  executive  presides. 

The  Perception  of  Opportunity 

The  first  question  which  the  man  who-  intends  to  do  really 
big  things  in  business  puts  to  himself  is,  "Where  are  my  best 
opportunities  for  profits?"  He  raises  this  question  in  no 
narrow,  sordid  sense,  because  the  ambition  to  do  things  worth 
while,  to  achieve  distinction,  to  acquire  knowledge  and  exer- 
cise skill,  to  play  in  a  masterful  way  the  two  great  games  of 
business  and  life,  constitute  his  persistent  motive  force. 
Granted,  however,  that  these  things,  and  not  a  sordid  love  of 

195 


196  THE  THINKER  IN  BUSINESS 


money  for  itself  alone,  are  what  he  would  have,  the  way  to 
attain  them  requires  that  first  of  all  he  locate  the  most  profit- 
laden  opportunities.  He  is  not  merely  to  "dig  in"  and  look 
no  further  when  the  first  prospects  show. 

In  the  search  for  possibilities  of  superior  service  or,  in  other 
words,  for  opportunities  for  profits  there  are  at  best  five  broad 
lines  which  deserve  consideration :  /^tt^  /^^ifi^=^ 

1.  Exploitation  of  natural  resources 

2.  Development  of  inventions 

3.  Improvements  in  production  and  distribution 

4.  Fluctuations  in  values 

5.  Supplying  known  wants 

I.  Exploitation  of  Natural  Resources 

"The  world  puts  its  richest  prizes  at  the  feet  of  great  or- 
ganizing ability,  enterprise,  and  foresight,"  says  John  D. 
Rockefeller,  Jr.,  *  because  such  qualities  are  rare  and  yetjiv; 
dispensable  to  the  development  of  the  vast  natural  resources 
which  otherwise  would  he  useless  on  the  eartli^s  surface  or  in 
its  hidden  depths." 

In  her  oil  fields,  timber  tracts,  coal  beds,  mineral  deposits, 
waterfalls  and  virgin  land,  nature  has  abundantly  provided 
for  the  American.  While  these  rich  opportunities  cannot  last 
forever,  they  are  not  yet  exhausted.  Those  which  remain, 
however,  require  wiser  and  more  economical  management 
than  has  characterized  much  of  their  treatment  in  the  past, 
which  was  well  termed  '^exploitation,"  in  the  worst  sense  of 
the  term.  Those  who  controlled  them  usually  considered  that 
they  were  privileged  to  grind  labor  in  production  and  at  the 
other  end  extort  the  largest  amounts  possible  from  the  con- 
sumer. 

The  resources,  such  as  forests,  coal,  and  water-power 
which  yet  remain  in  the  hands  of  the  government  will  be 
guardedly  leased  to  parties  who  desire  to  use  them,  and  the 


l^¥-  "-^-^ 


INITIATIVE  AND  VISION 


197 


use  of  those  already  in  private  control  is  liable  to  be  re- 
stricted. Nevertheless,  all .  of  these  natural  resources  are 
going  to  be  utilized  in  the  future  more  effectively  than  ever 
before.  To  manage  and  op;srate  them  under  government  lease 
or  regulation  will  demand  greater  business  ability  and  better 
executive  capacity  than  in  the  past,  when  inefficiency  in  man- 
agement could  be  made  good  by  an  extra  charge  to  the  con- 
sumer. Both  in  reputation  and  in  compensation  the  rewards 
will  be  sure  and  rich,  although  it  is  not  likely  that  any  aggre- 
gations of  wealth  such  as  the  Rockefeller  fortune  will  ever 
again  come  into  the  hands  of  an  individual, 

2.  Development  of  Inventions 

John  N.  Willys  who  later  was  to  enter  a  new  field  with 
great  success,  stood  one  day  in  1899,  looking  out  of  a  window 
in  a  Cleveland  skyscraper,  when  he  noticed  a  four-wheeled 
vehicle  creeping  along  the  street.  No  horse  was  attached  to 
It.     From  where  he  stood  it  looked  exactly  like  a  carriage. 

Quoting  Mr.  Willys'  own  words  in  relating  the  incident, 
*'I  immediately  said  to  myself,  that  machine  has  all  the  bicycles 
in  the  country  beaten  hollow — I  was  then  in  the  bicycle  busi- 
ness, I  made  up  my  mind  that  I  would  get  into  this  new  field 
at  the  first  moment  possible.  I  investigated  and  found  that 
I  had  seen  a  Winton  car;  but  I  did  ^^^t  tb*^"  ^^t  R,  ^hance  to 
examioe^t." 

The  resolution  thus  quickly  made,  led  Mr.  Willys  even- 
tually  to  his  present  place  in  the  foremost  ranks  ot  motor  cat 
manufacturers  as  President  of  the  Willys-Overland  Company. 

Mr,  Willys  is  typical  of  men  who  discover,  invent,  or 
make  available,  new  means  of  want-gratification. 

In  the  field  of  transportation,  trolley  cars,  steam  trains  and 
automobiles  have  almost  superseded  horses  and  coaches.  For 
purposes  of  communication,  the  telephone,  the  typewriter,  and 
the  telegraph  replace  the  pen  and  the  messenger  boy.     In  the 


198  THE  THINKER  IN  BUSINESS 

home,  the  electric  light,  the  refrigerator,  the  gas  stove,  the 
vacuum  cleaner,  the  washing  machine,  the  steam  radiator,  and 
the  packages  of  breakfast  food  and  bakery  products,  have  all 
replaced  the  slower  or  less-efficient  means. 

The  moving  picture  industry  has  made  fortunes  for  scores 
of  men.  The  varied  forms  of  the  phonograph  have  built  up 
great  industries.  The  automobile  industry  has  opened  the 
way  to  success  for  countless  men. 

The  Ford  Motor  Car  Company,  the  National  Cash  Regis- 
ter Company,  the  Burroughs  Adding  Machine  Company,  the 
Westinghouse  Air  Brake  Company,  the  American  Radiator 
Company,  the  Mergenthaler  Linotype  Company,  and  hundreds 
of  other  concerns  based  upon  successful  invention  and  now 
capitalized  at  many  millions,  were  once  without  any  tangible 
value  whatever — simply  ideas. 

Since  consumers  invariably  have  more  wants  than  can  pos- 
sibly be  gratified,  the  inventor  or  the  man  who  wishes  to  make 
an  invention  commercially  successful,  must  assure  himself 
that  it  satisfies  some  of  these  ungratified  wants.  If  he  does 
this  he  founds  his  profit-seeking  enterprise  upon  a  most  secure 
basis. 

3.  Improvements  in  Production  and  Distribution 

The  business  executive  is  now  and  will  in  the  future  "be 
subjected  to-  pressure  exerted  by  the  worker  for  a  larger  com- 
pensation and  by  the  consumer  for  lower  prices;  or,  what  is 
the  same  thing,  the  consumer  will  demand  more  for  what  he 
spends.  The  executive  must  seek  the  solution  of  this  problem 
along  two  chief  lines:  (i)  by  improvements  in  production, 
(2)  by  improvements  in  distribution. 

The  most  intelligent,  the  most  alert,  the  most  resourceful 
manufacturers  and  dealers  are  going  to  excel  in  this  improve- 
ment of  methods  and  will  build  up  big  businesses  for  them- 
selves.    The  less  intelligent,  the  less  teachable,  and  the  too 


INITIATIVE  AND  VISION 


199 


conservative  will  fall  behind  and  in  the  fierce  struggle  the  com- 
petitors will  unerringly  align  themselves,  some  far  in  the  rear. 
With  improved  methods  of  production  and  distribution  a 
certain  price  comes  to  be  set  for  a  commodity,  which  spells 
actual  loss  to  the  plodding  and  the  unprogressive  but  gain  to 
the  enterprising,  to  whom  the  selling  price  still  allows  a  com- 
fortable profit.  Their  use  of  improved  methods  gives  them  a 
lower  cost  and  a  wider  margin  for  profit. 

4.  Fluctuations  in  Values 

Another  opportunity  for  business  gain  is  found  in  the  fact 
that  practically  eVEry  commodity  with  which  .the  business  man 
has  to  deal — wheatj'^cotton,  oil,  merchandise,  metals,  machin- 
ery, real  estate,  building  materials,  labor — fluctuates  in  price 
from  year  to  year  and  even  from  day  to  day. 

Such  variations  delight  the  shrewd  bargainer  since  he 
thereby  sees  an  opening  for  that  oft-used  principle  of  his, 
"buy  low  and  sell  high." 

"The  only  time  I  ever  saw  John  Rockefeller  enthusiastic," 
said  an  early  acquaintance  in  commenting  upon  Mr.  Rocke- 
feller's ability  to  drive  a  good  bargain,  "was  when  a  report 
came  in  from  the  creek  that  his  buyer  had  secured  a  cargo  of 
oil  at  a  figure  much  below  the  market  price.  He  bounded 
from  his  chair  with  a  shout  of  joy,  danced  up  and  down, 
hugged  me,  threw  up  his  hat  and  acted  so  like  a  madman  that 
I  have  never  forgotten  it." 

The  industrial  history  of  America  for  decades  has  been 
characterized  by  a  series  of  alternating  periods  of  prosperity 
and  depression,  which,  despite  certain  highly  commendable 
efforts  to  provide  against  them,  doubtless  will  continue  in  the 
future.  Such  periods  of  prosperity  and  depression,  whether 
accompanied  by  wars  or  peace  treaties,  droughts  or  bounteous 
crops,  easy  money  or  financial  stringency,  result  in  the  up- 
heavals which  profit-seekers  'heretofore  have  utilized  to  their 


200  THE  THINKER  IN  BUSINESS 

advantage.  Whether  he  deals  in  real  estate,  securitieg^  grain 
or  foreign  exchange,  the  business  man  bases  his  operations 
upon  the  prevaihng  price  level  of  the  commodities  in  which  he 
is  interested.  He  estimates  the  future  in  terms  of  a  changed 
price  level  and  either  buys  or  sells  as  the  result  of  his  estimate. 

5.  Supplying  Known  Wants 

In  books  on  salesmanship  and  among  groups  of  salesmen 
spinning  yams  in  hotel  lobbies  the  "prospect"  is  often  con- 
ceived as  of  jelly-fish  mentality,  it  being  the  salesman's  task 
to  trick  him  deftly  into  buying  something  he  does  not  want. 
A  moment's  reflection  will  show  that  most  of  the  selling  in 
the  world  is  the  sale  of  things  that  people  want,  are  greatly 
interested  in,  and  in  fact  must  have.  The  great  businesses 
of  the  world  are  the  production  and  sale  of  necessary  commo- 
dities to  consumers  who  are  anxious  to  get  them. 

All  of  us  spend  the  largest  proportions  of  our  income  in 
supplying  ourselves  with  the  things  we  must  have.  Each 
human  being  requires  food,  shelter,  clothes,  fuel  and  light. 
These  are  the  great  necessities  of  life.  Most  of  us  make  our 
living  and  what  measure  of  fortune  we  can  by  producing  or 
selling  something  to  supply  these  diverse  wants.  People  in 
the  future  are  going  to  demand  these  same  things  in  a  fuller 
measure  and  of  better  quality,  and  all  who  desire  business 
openings  can  find  them  in  the  production,  the  manufacture, 
and  the  distribution,  not  of  the  things  people  do  not  want,  but 
of  the  things  they  do  want.  Here  we  have  again  the  idea  of 
service,  which  constitutes  in  business  the  great,  never  ceasing 
opportunity. 

Needs  and  the  Law  of  Service 

In  the  location  of  opportunity  it  is  significant  to  note  that 
the  leaders  of  business  today,  however  different  the  particular 
commodity  with  which  each  deals,  usually  proceed  upon  one 


INITIATIVE  AND  VISION  201 

central  principle.  Men  such  as  John  Wanamaker  and  Mar- 
shall Field  in  merchandising,  Frank  A.  Vanderlip  and  Otto 
Kahn  among  bankers,  and  Henry  Ford  and  W.  L.  Douglas 
among  manufacturers  win  their  large  profits  through  superior 
service.  Upon  the  basis  solely  of  such  superior  service,  they 
have  been  able  to  keep  friends,  patrons,  and  employees;  to 
build  up  strong,  endurmg  business  organizations ;  and  to  shape 
for  themselves  notable  careers  as  gainers  of  profits,  in  the  best 
sense  of  that  word. 

"This  is  the  service  the  new  business  man  now  can  render 
his  day  and  his  people,"  declares  E.  St.  Elmo  Lewis,  "create 
a  greater  business  in  the  service  of  the  people." 

The  Many  Roads  Upward 

The  opportunities  for  profits,  indicated  in  a  general  way 
by  the  foregoing  paragraphs,  are  exceedingly  numerous.  In 
fact,  the  thirty  largest  fortunes  of  America,  according  to  a 
tabulation  recently  made  by  Forbes'  Magazine,  had  as  their 
chief  source,  sixteen  different  businesses.  The  road  to  profits 
obviously  is  not  a  narrow,  hedged-in  path;  it  is  not,  indeed, 
a  path  at  all,  but  a  broad  highway  along  which  many  types 
of  vehicle  may  pass. 

"Do  not  hesitate  to  engage  in  any  legitimate  business," 
says  Andrew  Carnegie,  "for  there  is  no  business  in  America, 
I  do  not  care  what,  which  will  not  yield  a  fair  profit  if  it 
receives  the  unremitting,  exclusive  attention,  and  all  the  cap- 
ital of  capable,  industrious  men." 

The  Business  Man's  Task 

The  Great  War  has  revolutionized  business  methods  and 
has  inculcated  certain  business  truths  that  will  mean  a  per- 
manently changed  business  order.  German  efficiency,  which 
before  the  war  was  rapidly  possessing  itself  of  the  trade,  the 
manufacturing,  and  the  financing  of  the  world  will  not  find 


202  THE  THINKER  IN  BUSINESS 

its  former  rivals,  France,  Great  Britain,  and  America,  un- 
mindful of  the  new  order.  Purged  of  many  an  old  ineffi- 
ciency the  Allied  nations  will  go  forward  upon  a  new  basis.  If 
we  are  to  play  our  part  as  a  great  industrial  nation,  the  de- 
mands on  those  who  aspire  to  lead  will  not  slacken.  The 
business  men  of  the  future,  the  producers  and  distributors  of 
commodities,  will  have  man-sized  jobs  laid  out  for  them,  and 
the  half -trained,  uninformed  slackers  who  are  not  ready  to 
meet  the  new  conditions  will  be  crowded  aside  with  scant 
ceremony. 

Alertness  a  Business  Asset 

The  large  gains,  the  conspicuous  careers  wrought  out  in  our 
country  in  the  past  and  to  be  attained  in  the  future  by  the 
young  executives  of  the  day,  have  resulted  or  will  result,  from 
change  in  conditions,  from  the  exploitation  of  new  projects 
by  men  of  intelligence  and  daring  originality. 

The  average  grade  of  ability  under  normal  conditions  will 
receive  its  conservative  reward,  but  the  executive  not  satisfied 
with  that  must  needs  cultivate  something  new  and  unusual; 
must  take  advantage  of  changes  and  new  opportunities  as  they 
offer.  Alertness  to  discover  and  seize  opportunities  at  the 
right  time  constitutes  a  most  valuable  business  asset. 

A  Dayton  merchant,  suffering  from  a  nervous  breakdown 
due  to  overwork  and  worry  in  attempting  to  keep  tabs  on  the 
details  of  his  retail  store,  noticed  in  the  engine  room  of  the 
ship  which  was  taking  him  to  Europe  a  device  which  recorded 
the  number  of  revolutions  of  the  propeller  shaft.  Hundreds 
of  other  passengers  had  observed  the  same  device  without 
any  particular  consequence,  but  in  the  mind  of  Jacob  Ritty 
this  question  at  once  arose,  *'Why  not  construct  a  machine  that 
will  record  each  coin  put  in  the  till?"  Hurrying  home  to  Day- 
ton, he  set  to  work  v.ith  his  brother,  a  skilled  mechanic,  and 
evolved  the  first  cash  register. 


INITIATIVE  AND  VISION 


203 


Th3  crude  yet  novel  machine  soon  afterwards  came  to  the 
attention  of  a  second  alert  intellect,  in  the  person  of  a  small- 
town merchant  whose  store  was  located  some  distance  from 
Ritty's  tiny  factory  at  Dayton,  Impressed  by  the  vast  possi- 
bilities of  the  device,  this  John  H.  Patterson  took  over  the 
patents  and  founded  the  now  world-famous  National  Cash 
Register  Company. 

The  thousands  of  visitors  at  the  Centennial  Exposition  in 
1876  considered  the  bicycle  exhibited  there  merely  a  curiosity; 
Colonel  Pope  recognized  in  it  the  basis  of  a  new  industry  and 
he  returned  to  Hartford  to  enter  upon  his  notable  career  as  a 
manufacturer. 

The  changes  which  took  place  in  the  sulphur-cured  india- 
rubber  accidentally  dropped  by  Charles  Goodyear  upon  a  stove, 
meant  nothing  to  his  good-natured  friends;  to  Goodyear  it 
was  a  revelation — the  long-sought  process  of  treating  rubber 
gum. 

The  streets  black  with  telephone  wires  were  for  years  in 
plain  sight  of  thousands,  yet  it  remained  for  Theodore  Vail 
to  dream  of  wires  underground  and  at  Attleboro  to  begin  his 
first  experiments.  That  wires  should  be  underground  now 
appears  obvious  but  persons  fifty  years  from  now  will  wonder 
why  persons  today  overlooked  so  many  things  to  them  equally 
obvious. 

Though  they  travel  the  same  road  together,  men  do  not 
see  the  same  things.  As  Russell  Sage  dryly  remarked,  **Some 
people  never  see  opportunity  in  anything  and  they  never  get 
along."  The  explanation  which  these  ne'er-do-wells  often 
advance  is  that  opportunity  knocks  but  once  upon  each  man's 
door  and,  should  he  prove  unresponsive,  passes  along  never 
to  return;  they,  unfortunately,  failed  to  recognize  the  pres- 
ence, hence  their  present  plight.  Of  the  many  absurd  ideas 
which  encumber  the  human  mind  this  deserves  high  rank  as 
the  worst.     Since  business  conditions  are  continually  chang- 


204 


THE  THINKER  IN  BUSINESS 


ing,  the  opportunity  for  an  alert  mind  to  seize  upon  enterprises 
at  the  psychological  moment  never  is  closed. 

Pioneer  versus  Followers 

The  pioneer,  with  a  mind  alert  to  the  significance  of  that 
which  he  sees,  continually  keeps  tilling  and  harvesting  in  the 
most  fertile  fields,  while  the  follower  either  contents  himself 
with  the  former's  once  worked  fields  or,  having  once  secured 
handsome  returns  in  a  certain  venture,  continues  persistently 
in  this  same  activity,  oblivious  of  the  fact  that  the  field  is 
worked  out. 

The  profit-maker  keeps  his  facilities  always  mobilized, 
ready  to  move  in  whatever  direction  gain  calls. 

Rockefeller's  early  success  as  a  monopolist  was  founded 
upon  railway  rebates,  but  as  soon  as  the  independent  refiners 
thought  to  best  him  by  inducing  a  pipe  line,  he  promptly 
eschewed  railroads  and  the  Standard  was  soon  pumping  oil 
to  New  York.  Commodore  Vanderbilt  believed  in  sailing 
vessels,  but  after  a  time  he  saw  the  superiority  of  steam  and 
turned  to  steamboats;  and  later,  beginning  to  feel  the  effect 
of  rail  transportation,  he  sold  his  beautiful  steamers  and  re- 
invested his  money  in  the  rusty  iron  rails  and  wheezy  little 
locomotives  of  the  competing  railways.  The  Commodore  was 
then  an  old  man  and  his  opinion  of  railroads  prior  thereto  had 
been  scarcely  printable,  but  these  things  did  not  keep  him  from 
the  profitable  path. 

The  Power  of  Initiative 

The  profit  maker  is  a  cultivator  of  the  new,  a  herald  of 
things  to  come.  The  rapidity  of  his  innovations  outdistances 
competitors.  Bankrupt  railroads,  overcapitalized  factories, 
problematic  inventions,  or  offerings  of  novelty  shoes  and 
spring  hats  he  evaluates  in  terms  of  the  future. 

"We  take  pleasure  in  the  success  of  everybody  in  busi- 


^iX(^ 


WM 


INITIATIVE  AND  VISION  205 


ness,"  says  John  Wanamaker,  "and  even  when  instant  dupH- 
cation  of  our  methods  is  attempted  we  hope  that  tomorrow 
we  shall  be  as  fresh  as  toda^  and  shall  be  in  the  future  as  in 
the  past  attempting  to  do  what  has  hitherto  been  unat- 
tempted." 

The  present  is  obvious,  and  as  such  is  usually  found  to 
have  been  already  exploited.  Even  a  new  plan,  in  its  day 
considered  highly  original,  assures  no  permanent  hold;  com- 
petitors abound  and  their  advances  gradually  undermine  the 
prosperity  of  any  stationary  concern.  Only  through  initia- 
tive, the  power  to  produce  new  ideas  continually,  is  perma- 
nent advantage  possible. 

They  copied  all  they  could  follow, 
But  they  couldn't  follow  my  mind; 

And  I  left  them  sweating  and  stealing 
A  year  and  a  half  behind. 

The  Fresh  Viewpoint 

Tbe  new  irle^  is  a  magri^t  drawing  profits  tO  its  pOSSCSSOr. 

It  attracts  unto  itself  money,  men,  and'.materials ;  expresses 
its  presence  in  unique  designs,  prompt  deliveries,  low  costs  and 
satisfactory  service ;  and,  the  real  soul  of  the  organization,  de- 
termines the  onward  career  of  office,  store,  or  factory.  The 
organization  manned  by  creative  thinkers  is  founded  upon  a 
rock. 

The  great  value  of  ideas  to  men  in  business  is  coming  to  be 
more  fully  appreciated.  The  executives  in  the  front  ranks,  in 
fact,  are  even  now  past  the  stage  of  discussion,  and  instead 
are  intent  upon  the  best  methods  of  systematically  cultivating 
new  ideas. 

An  excellent  first  suggestion  is  offered  by  the  history  of 
inventions.  The  cotton-gin  was  the  work  not  of  a  southern 
planter,  as  might  have  been  expected,  but  of  a  Connecticut 
schoolmaster;  the  idea  of  the  Jenney  car  coupler  was  evolved 
from  the  brain  of  an  illiterate  French-Canadian,  who  knew 


206  THE  THINKER  IN  BUSINESS 

more  about  brands  of  whiskey  than  railroads;  the  Bessemer 
process  was  formulated  by  a  man  who  had  no  connection  with 
the  iron  and  steel  trade,  and  knew  little  or  nothing  of  metal- 
lurgy. "Persons  wholly  unconnected  with  a  particular  busi- 
ness," declared  Bessemer  in  explaining  how  he  had  entered 
upon  his  career  untrammeled  by  notions,  "are  the  men  who 
make  all  the  great  inventions  of  the  age." 

The  outsider's  fresh  viewpoint  accounts  for  this  paradox- 
ical fact.  Men  engaged  in  a  particular  business  are,  too  com- 
monly, mere  diligent  workers,  plodders  who  perform  their 
daily  routine  without  a  comprehensive  system,  without  inven- 
tive or  constructive  ability — sterile  workers  who  lack  vision. 
These  workers  in  a  rut  cannot  see  anything  but  the  day's  work 
ahead.  In  an  executive  position  they  are  digging  their  busi- 
ness graves. 

In  order  to  seek  out,  attain  and  utilize  the  fresh  viewpoint 
for  himself,  the  executive  must  keep  himself  free  from  en- 
tangling masses  of  detail.  Vacations,  rest  periods,  and 
change  of  occupation  keep  a  man  fit  and  provide  the  condi- 
tions under  which  the  development  of  new  ideas  is  encouraged. 
In  addition,  he  should  by  conference,  by  discussion  and  similar 
methods,  get  the  opinions  of  others  on  his  problems.  An 
open-minded  attitude  at  these  conferences  and  elsewhere  will 
yield  a  rich  harvest.  At  times,  it  may  be  worth  while  to  get 
in  an  auditor  or  efficiency  expert  to  examine  and  report  any- 
thing that  may  be  wrong  or  lacking.  If  a  new  man  is  taken 
on,  his  impressions  before  he  settles  into  the  existing  routine 
will  often  supply  a  valuable  corrective. 

The  Raw  Material  of  Ideas 

It  cannot  be  too  strongly  emphasized  that  the  mind  can- 
not shape  up  new  ideas  unless  it  is  supplied  with  appropriate 
raw  material.  Corporation  heads  oftentimes  complain  that 
their  junior  executives  are  sterile,  but  they  do  not  appreciate 


INITIATIVE  AND  VISION 


207 


the  fact  that  the  junior's  mind,  however  eager,  cannot  pro- 
duce if  starved.  The  executive  anxious  to  cultivate  the  power 
of  initiative  in  himself  and  in  those  working  under  him,  ought 
in  justice  to  all  concerned,  to  see  that  the  necessary  materials 
for  thinking  are  provided.  What  are  some  of  the  sources  of 
these  raw  materials  ? 

A  noted  advertising  man — advertising  of  all  businesses 
being  one  which  demands  originality — clips  every  illustra- 
tion which  contains  a  figure,  a  pose,  a  layout,  or  an  idea  of 
any  kind  that  he  finds  stimulating.  Material  of  value  can  be 
found  in  the  educational  trip,  the  late  books,  the  trade  paper, 
the  magazine  article,  the  conference,  the  new  friend.  *'When 
I  get  hold  of  a  man  who  is  versed  in  the  Word  of  God,"  said 
Moody,  "I  just  pump  him." 

John  Jacob  Astor  gained  from  a  loquacious  immigrant 
the  idea  of  that  fur  trade  upon  which  his  fortune  was  to  be 
founded;  James  J.  Hill,  a  shipping  clerk  at  St.  Paul,  drew 
from  the  journals  of  Lewis  and  Clark  and  Irving's  "Astoria" 
the  materials  which  fired  his  imagination  to  be  empire  builder 
of  the  northwest;  George  Pullman,  forced  one  night  to  lie 
awake  as  the  bunk  car  in  which  he  rode  jolted  along  from 
Buffalo  to  Westfield,  gained  the  experience  which  was  to 
bring  about  a  new  sleeping  car. 

The  Search  for  Business  Ideas 

In  modern  factory  and  ofiice  practice,  suggestion  box, 
questionnaire,  and  call  to  conference,  are  among  the  means 
employed  in  securing  new  ideas  or  new  applications  of  old 
ideas. 

Early  in  his  railroading  career  young  Cassatt,  late  presi- 
dent of  the  Pennsylvania  system,  made  it  his  business  to  be 
the  most  approachable  of  division  superintendents.  No  man 
was  ever  more  sought  after  by  cranks  and  geniuses  alike, 
with  their  models  of  automatic  couplers,  sleeping  cars,  tank- 


2o8  THE  THINKER  IN  BUSINESS 

ing  and  signaling  systems,  than  was  Cassatt.  He  was  willing 
to  seek  through  chaff  to  find  wheat.  He  made  it  a  rule, 
moreover,  to  be  even  more  accessible  to  his  own  petty  em^ 
ployees.  Brakemen,  switch  tenders,  trackmen,  all  found  the 
door  to  his  private  office  open,  and  their  practical  suggestions 
enabled  many  an  innovation  to  reach  its  highest  value. 

"Bringing  this  down  to  actual  factory  management,"  says 
Superintendent  Field  of  the  Illinois  Steel  Company,  "we  try 
to  get  this  feeling  into  our  men  by  always  stimulating  the 
initiative  in  them.  We  are  ready  to  pay  the  cost  of  any- 
thing that  any  of  our  men  makes  in  our  line  and  then  the 
patent  belongs  to  him,  we  having  the  shop  rights  and  he 
having  the  right  to  sell  the  patent  or  to  receive  royalty  from 
its  use  anywhere  else  he  chooses."  Some  executives  have 
carried  this  plan  so  far  that  the  thought  atmosphere  of  the 
establishment  has  been  transformed.  All  become  co-operators 
in  the  development  of  new  ideas. 

Imagination,  a  Quality  of  Empire  Builders 

The  supply  of  materials,  however  necessary,  constitutes  but 
the  preliminary  step  in  the  development  of  a  new  idea.  The 
crude  materials,  though  nuggets  in  the  rough,  are  to  be  re- 
fashioned under  the  impress  of  the  imagination.  It  is  true 
that  business  men  have  too  often  regarded  the  imagination 
as  a  faculty  required  only  by  poets,  novelists,  musicians,  and 
painters.  Thinking  of  it  merely  in  terms  of  the  bizarre  flights 
of  fancy  that  sometimes  steal  upon  one  in  reverie  or  in  sleep 
after  eating  overmuch,  it  is  not  strange  that  they  have  con- 
sidered "imaginative"  synonymous  with  "impractical,"  and 
their  greatest  dread  has  been  to  be  called  visionary. 

Not  so  with  great  leaders.  The  men  who  have  made 
their  lasting  impress  upon  industry — empire  builders  such  as 
Cecil  Rhodes  and  James  J.  Hill,  creators  of  new  products  like 
Cyrus  McCormick  and  George  Westinghouse,  financial  organ- 


f  INITIATIVE  AND  VISION  209 

izers  like  J.  Pierpont  Morgan,  founders  of  famous  enterprises 
such  as  George  Pullman,  Andrew  Carnegie,  and  George  East- 
man— have  in  every  case  possessed  power  of  imagination. 
They  saw  more  than  other  men  saw.  The  vast  expanses  of 
territory  left  unoccupied,  the  neglected  mineral  deposits,  the 
small  struggling  organizations  with  inadequate  capital,  or  the 
poor  and  inefficient  plant  equipment  at  which  these  men  gazed 
were,  by  the  intensity  of  their  creative  imagination,  trans- 
formed into  those  greater  things  to  be.  The  solid  realities 
which  later  appeared  listed  upon  the  balance  sheets  represented 
the  materialization  only  of  those  mental  pictures  which  shaped 
themselves  before  their  constructive  minds. 

Development  of  New  Ideas 

The  imagination  creates  and  develops,  not  merely  repro- 
ducing the  raw  materials  with  which  the  mental  shelves  have 
been  stored.  Its  creations  are  often  as  different  from  the 
original  materials  as  are  crude  metals  and^  finished  time- 
pieces, or  raw  cocoons  and  dainty  silken  garments.  This 
process  of  mental  elaboration,  the  manufacture  of  new  thought 
products,  well  deserves  the  serious  interest  of  an  executive. 
He  cannot  safely  be  too  busy  to  think. 

A  certain  stockholder  of  the  Standard  Oil  Company — so 
runs  a  story  told  by  a  president  of  the  Illinois  Manufacturers' 
Association — was  much  annoyed  upon  glancing  from  his 
office  window  to  the  offices  of  the  oil  company  across  the 
way  to  observe  one  of  its  department  managers  day  after 
day  standing  with  his  hands  in  his  pockets,  gazing  out  into 
the  street  for  the  greater  part  of  his  time. 

*'Here  is  a  man  who  draws  a  five-figure  salary,"  thought 
the  stockholder,  "who  is  loafing  on  the  job."  In  the  end,  feel- 
ing it  his  duty  to  do  so,  since  he  was  a  stockholder  and  cer- 
tain his  efforts  would  be  appreciated,  he  communicated  the 
matter  to  the  Standard's  acting  head. 


2IO  THE  THINKER  IN  BUSINESS 

"Mr.  Jones,"  the  acting  head  of  the  company  addressed 
the  stockholder  with  a  smile,  **I  sincerely  thank  you  for  the 
interest  you  have  shown  in  the  maintenance  of  our  efficiency, 
I  appreciate  the  fact  that,  from  your  window,  Mr.  Smith 
appears  every  bit  as  idle  as  you  say. 

"But  from  your  window  it  is  impossible  for  you  to  see 
what  is  going  on  inside  of  Mr.  Smith's  head.  My  experi- 
ence with  Mr,  Smith  has  been  such  that  I  know  it  would  be 
highly  profitable  to  this  company  to  hire  a  dozen  other  similar 
Smiths  if  we  could  get  them — pay  them  similarly  large  salaries 
to  stand  with  their  hands  in  their  pockets,  looking  out  of  their 
windows — thinking  thoughts  as  valuable  as  those  which  Mr. 
Smith  thinks  and  crystallizes." 

Thought  as  a  Business  Force 

The  reply  of  the  acting  head  was  both  good  business  and 
good  psychology.  The  great  storehouse  of  impressions,  how- 
ever received,  is  the  subconscious.  Within  its  mystic  cham- 
bers are  packed  all  our  yesterdays.  In  the  rearranging  of 
these  subconscious  thought  materials  lies  the  possibility  of  a 
new  and  effective  combination,  the  bringing  forth  of  original 
conceptions.  This  usually  is  the  fruit  of  musing  and  solitude. 
The  brilliant  schemes  of  Cecil  Rhodes  were  in  the  main  de- 
veloped during  morning  rides  over  the  mountains  in  South 
Africa.  Riding  alone  across  the  deserted  slopes,  with  the 
stupendous  works  of  nature  frowning  down  upon  him,  Rhodes 
was  able  to  commune  with  himself  in  peace.  He  recognized 
what  many  a  harassed  executive  has  not  yet  grasped,  the 
supreme  value  of  an  idea  well  matured. 

The  brilliant  minds  which  for  centuries  found  in  philos- 
ophy, literature,  or  science  the  intellectual  element  they  craved 
are  to  be  from  now  on  in  steadily  increasing  numbers  attracted 
by  the  business  career.  For  business  does  afford  scope  for 
the  fertile  intellect,  and  the  view,  long  current,  that  the  busi- 


INITIATIVE  AND  VISION  211 

ness  man  was  merely  a  diligent  worker  who  at  best  plodded 
through  the  day's  routine  without  a  comprehensive  system, 
with  neither  imagination  nor  a  constructive  mind,  must  ac- 
cordingly give  way  to  the  conception  of  the  executive  as  crea- 
tive thinker. 

The  drudge  may  fret  and  tinker, 

Or  labor  with  lusty  blows, 
But  back  of  him  stands  the  thinker. 

The  clear-eyed  man  who  knows. 
Might  of  the  roaring  boiler. 

Force  of  the  engine's  thrust, 
Strength  of  the  sweating  toiler. 

Greatly  in  thee  we  trust. 
But  back  of  them  stands  the  schemer. 

The  thinker  who  drives  things  through. 
Back  of  the  job — the  dreamer. 
Who's  making  the  dream  come  true. 

— Berton  Braley. 


Exercises 

Intelligent  Observation 

The  efficient  man  by  no  means  goes  about  open-eyed,  staring  at 
everything,  but  he  does  observe,  and  observe  intently,  the  things  that 
concern  him. 

The  way  profits  are  made  in  your  particular  field  vitally  concerns 
you.  In  working  through  the  exercise  which  follows,  you  will  secure 
some  good  suggestions  and  improve  your  power  to  observe  in  places 
where  observation  is  well  worth  your  while. 

List  on  Chart  12  twenty  instances  in  which  profits  appealing  to  you 
as  entirely  satisfactory  were  made.  Confine  this  list  of  course  to 
your  own  vocation.  In  compiling  it  you  may  consult  daily  papers, 
trade  papers,  your  associates,  or  any  other  source  of  information 
applicable  in  your  particular  occupation,  and  the  full  list  need  not 
be  secured  at  once.  Simply  keep  alert  to  how  profits  are  being  made 
in  your  field  and  the  list  after  a  time  will  be  completed.  Do  not  fill 
out  the  third  column  until  after  the  list  of  specific  instances  has  been 
compiled,  since  its  purpose  is  to  yield  you  certain  general  principles 
illustrated  in  the  concrete  instances. 


212  THE  THINKER  IN  BUSINESS 

Keeping  the  Mind  Alert  and  Active 

1.  Are  you  careful  to  see  that  your  mind  is  in  the  main  stream  of 
ideas,  where  it  can  be  continually  stimulated? 

"When  I  want  to  discover  something,"  says  Thomas  A.  Edison, 
"I  begin  by  reading  up  everything  that  has  been  done  along  that  line 
in  the  past.  I  see  what  has  been  accomplished  at  great  labor  and 
expense  in  the  past.  I  gather  the  data  of  many  thousands  of  ex- 
periments as  a  starting  point,  and  then  I  make  thousands  more." 

In  other  words,  Mr.  Edison  in  evolving  those  new  projects  which 
have  made  him  world-famous  as  an  inventor  nourishes  his  mind  in 
the  accumulated  experience  of  other  men.  He  does  not  go  it  alone, 
a  hermit  shut  away  in  some  remote  cave. 

2.  Are  you  open-minded,  ready  to  receive  a  good  idea  from  what- 
ever source  it  may  come  ? 

"There  is  a  principle  which  is  a  bar  against  information,  which 
is  proof  against  all  arguments,  and  which  cannot  fail  to  keep  a  man 
in  everlasting  ignorance,"  says  Herbert  Spencer;  "this  principle  is 
contempt  prior  to  examination." 

3.  Do  you  talk  with  men  who  stimulate  you? 

The  ideas  upon  which  John  Jacob  Astor  laid  the  foundations  of 
his  great  fortune  were  gained  from  an  American  furrier  with  whom 
as  an  immigrant  he  talked  on  shipboard. 

The  young  executive  will  find  talking  with  bigger  men  than  he 
a  continual  stimulus  and  source  of  inspiration.  Join  a  trade  club 
or  engineers'  club  where  men  of  affairs  gather — be  a  good  listener 
and  a  pertinent  questioner.  Absorb  ideas  relating  to  your  job  and 
never  miss  an  opportunity  to  study  and  understand  the  men  higher  up 
in  your  own  concern. 

4.  Do  you  read  the  trade  papers — and  books? 

The  story  of  Astor's  career  as  written  in  Irving's  "Astoria"  fired 
the  imagination  of  a  steamship  clerk,  James  J.  Hill,  and  the  bound- 
less stretch  of  fertile  and  untilled  land  in  the  northwest  became  his 
life  theme, 

5.  Do  you  use  an  idea  file? 

The  philosopher  Hobbes  took  his  own  intellectual  processes  with 
all  seriousness.  "He  walked  much,"  says  his  friend  Aubrey,  "and 
contemplated  and  he  had  in  the  head  of  his  staffe  a  pen  and  inke 
home,  carried  always  a  note-book  in  his  pocket,  and  as  soon  as  a 
thought  darted,  he  presently  entered  it  into  his  book,  or  otherwise 
he  might  perhaps  have  lost  it." 


INITIATIVE  AND  VISION 


213 


President  Patterson  of  the  National  Cash  Register  Company  is  in 
this  respect  a  worthy  follower  of  Hobbes.  His  brain  works  day 
and  night — and  he  sees  to  it  that  its  ideas  do  not  escape  him.  Even 
at  his  bedside  he  has  a  pencil  and  pad  to  which  he  commits  ideas 
the  instant  they  enter  his  head.  Every  morning  he  dictates  to  a 
secretary  dozens  of  orders  to  be  transmitted  to  the  various  heads  of 
departments. 

"All  the  great  orators  of  the  world  have  planned  out  their  creation 
to  the  smallest  details,"  says  Clarence  M.  Woolley,  President  of  the 
American  Radiator  Company,  "all  great  achievements  have  first 
existed  in  the  mind  of  some  man."  One  of  these  great  achievements 
may  germinate  within  your  mind  today.  Welcome  it.  Jot  it  down, 
dictate  it  in  a  memo  to  yourself,  file  it;  by  all  means  do  not  let  that 
idea  escape  for  it  is  stuff  out  of  which  profits  are  made. 

6,  Do  you  meditate  upon  what  you  have  heard  and  read? 

Each  person  is  unique,  with  a  life  purpose  all  his  own;  and  an 


1 

Twenty  Specific 
Instances 

In  Each  Case  the 
Profit  Was  Made 
AS  Follows 

These  Various  Ways 
FOR  Making  Profits 
Reduce  Them  selves  to 

Test  Chart  12.    How  Profits  are  Being  Made  in  My  Field 


214  "TH^  THINKER  IN  BUSINESS 

idea  from  outside  is  not  really  his  and  ready  to  meet  his  needs  until 
it  has  passed  through  the  crucible  of  his  own  thought.  Meditation 
accomplishes  this.  Such  meditation  is  purposeful,  not  the  mere  won- 
dering about  what  may  happen,  over  which  so  much  time  is  con- 
sumed. "Our  most  useful  cogitations  are  not  pure  reveries,  absolute 
driftings,"  says  James,  "but  revolve  about  some  central  interest  or 
topic  to  which  most  of  the  images  are  relevant,  and  toward  which 
we  return  promptly  after  occasional  digressions."  This  constitutes 
fruitful  thinking. 

7.  Are  you  giving  to  creative  work  the  time  it  justly  leserves? 

Ideas  are  intangible,  and  in  an  age  of  machinery  and  materialism 
their  significance  is,  no  doubt,  obscured.  Yet  ideas  are  true  assets, 
the  real  basis  of  profit,  and  they  can  be  produced  systematically. 

These  questions  open  the  way  to  profits  with  a  realness  which 
unless  you  fill  out  Test  Chart  12  you  cannot  appreciate. 

This  exercise  provides  you  certain  general  principles  and  concrete 
suggestions  which  will  increase  your  own  profit-making  power.  Does 
it  not  convince  you  that  conspicuous  gains  are  associated  with  new 
enterprises  and  new  methods? 


.^^ 


■^ 

K^ 


.»• 


^^^^^ 


CHAPTER  XII 

THE  FEASIBLE  PROJECT 

It  is  surprising  how  many  bright  business  men  go  into  im- 
portant undertakings  with  little  or  no  study  of  the  con- 
trolling conditions  they  risk  their  all  upon. — John  D. 
Rockefeller. 

The  Commercial  Instinct 

The  man  of  creative  abihty,  the  possessor  of  initiative  and 
vision  as  these  quahties  have  been  discussed  in  the  preceding 
chapter,  runs  the  risk  of  becoming  so  captivated  by  the  ideas 
which  flash  through  his  brain  that  he  develops  nothing  sys- 
tematically. A  creature  of  enthusiasm,  he  perhaps  lacks 
practical  sense  and,  in  the  more  pronounced  cases,  while  in 
want  himself,  sees  the  fruits  of  his  inventions  enrich  the  more 
prosaic  but  better  balanced  men  by  whom  these  inventions  were 
commercialized. 

Such  a  man  was  Charles  Goodyear,  an  inventor  who  be- 
lieved in  the  then  useless  india-rubber  as  a  saint  believes  in 
heaven.  His  friends  regarded  him  as  a  monomaniac.  In 
spite  of  poverty,  family  sickness,  loss  of  friends,  ridicule, 
and  a  series  of  disastrous  experiments,  he  kept  on  for  years 
testing  different  methods  of  manufacture,  even  dressing  him- 
self in  clothes  made  of  his  samples  in  the  hope  of  proving 
its  durability  and  of  securing  some  advertising.  He  was 
certainly  an  odd  figure  and  in  his  appearance  quite  justified 
the  remark  of  one  of  his  friends  who,  upon  being  asked  how 
Mr.  Goodyear  could  be  recognized,  replied:  "If  you  see  a 
man  with  an  india-rubber  coat  on,  india-rubber  shoes,  an 
india-rubber  cap,  and  in  his  pocket  an  india-rubber  purse, 
with  not  a  cent  in  it,  that  is  Goodyear." 

215 


2i6  THE  THINKER  IN  BUSINESS 

After  having  firmly  established  the  merits  of  india-rubber, 
he  was  still  too  thoroughly  an  inventor  and  too  little  the  man 
of  business  to  protect  himself  from  schemers  who  plundered 
him  of  the  profits  of  his  invention.  The  United  States  Com- 
missioner of  Patents,  in  1858,  thus  spoke  of  his  losses : 

"No  inventor,  probably,  has  ever  been  so  harassed,  so 
trampled  upon,  so  plundered  by  that  sordid  and  licentious 
class  of  infringers  known  in  the  parlance  of  the  world,  with 
no  exaggeration  of  phrase,  as  'pirates.'  The  spoliation  of 
their  incessant  guerrilla  warfare  upon  his  defenceless  rights 
has,  unquestionably,  amounted  to  millions." 

Notwithstanding  the  epoch-making  character  of  his  in- 
vention, which  brought  millions  to  others,  Goodyear  himself 
died  insolvent  and  left  his  family  heavily  in  debt. 

The  long  career  of  Thomas  A.  Edison,  on  the  other  hand, 
so  richly  and  variously  productive,  is  evidence  of  what  can  be 
achieved  when  originality  is  directed  by  the  sense  of  what  is 
practical.  An  experience  of  his  suggests  the  value  of  the  early 
"hard  knock"  which  earnest  men  have  so  frequently  turned 
to  good  account. 

Mr.  Edison's  first  invention  was  a  device  for  registering 
votes  promptly  and  automatically;  each  legislator  had  only 
to  press  a  button  and  in  a  flash  the  final  result  *'Aye"  and 
"No"  was  set  forth.  The  proud  young  inventor  demonstrated 
the  machine  before  a  committee  of  the  National  House, 
in  the  full  expectation  that  its  merit  would  at  once  be  appre- 
ciated. 

An  experienced  legislator  with  two  sentences  dismissed 
the  device  over  which  the  young  man  had  toiled  for  months : 
"Young  man,  if  there  is  any  invention  on  earth  that  we  don't 
want  down  here,  it  is  this.  One  of  the  biggest  weapons  in 
the  hands  of  a  minority  to  prevent  bad  legislation  is  filibus- 
tering on  votes,  and  this  instrument  would  prevent  it." 

The  idea  was  unique,  but  not  wanted. 


THE  FEASIBLE  PROJECT  217 

Edison  and  Commercial  Availability 

A  man  less  shrewd  might  have  raved  against  "the  un- 
appreciative  public,"  but  not  Edison.  On  the  contrary,  he 
made  the  decision  upon  which  his  later  remarkable  achieve- 
ments in  large  measure  depend,  viz.,  his  inventive  faculties 
henceforth  were  to  be  devoted  only  to  things  for  which  there 
was  a  genuine  demand. 

"The  point  in  which  I  am  different  from  most  inventors," 
said  Mr.  Edison  not  long  since,  "is  that  I  have,  besides  the 
usual  inventor's  make-up,  the  bump  of  practicaHty  as  a  sort 
of  appendix,  the  sense  of  the  business  or  money  value  of  an 
invention.  Oh,  no,  I  didn't  have  it  naturally.  It  was  pounded 
into  me  by  some  pretty  hard  knocks.  Most  inventors  who 
have  an  idea  never  stop  to  think  whether  their  invention  will 
be  salable  when  they  get  it  made.  Unless  a  man  has  plenty 
of  money  to  throw  away,  he  will  find  that  making  inventions 
is  about  the  costliest  amusement  he  can  find.  Commercial 
availability  is  the  first  thing  to  consider." 

Reflection  Performs  an  Essential  Service 

Success  in  the  conduct  of  business  requires  sound,  cau- 
tious judgment.  No  man  can  get  on,  of  course,  without  alert- 
ness of  mind,  the  power  to  think  of  things  to  do.  But 
there  is  no  man  who  can  carry  the  responsibility  of  building 
a  business,  or  directing  the  work  of  other  men  unless  he 
has  a  shrewd  sense  of  what  it  is  safe,  wise,  and  profitable 
to  do. 

The  man  of  phenomenal  creative  power,  therefore,  requires 
an  extremely  heavy  balance  wheel.  Such  a  balance  wheel, 
the  machine  of  analysis  and  trained  judgment,  is  reflection. 
Under  its  control  the  native  impulse  to  act  upon  whatever  idea 
may  have  captivated  the  mind  is  to  some  extent  checked  and 
thrown  back  upon  itself.  .Selective  thinking  ensues;  in  conse- 
quence of   its   searching  tests  numberless   ideas  of   inferior 


2i8  THE  THINKER  IN  BUSINESS 

worth  are  sternly  subordinated  or  weeded  entirely  from  the 
mind  so  that  the  most  practical  may  hold  sway. 

Andrew  Carnegie  on  Business  Judgment 

The  business  man  might  of  course  put  all  his  ideas  into 
operation  as  they  were  first  conceived  and  try  them  out  by  the 
test  of  actual  experience.  Experience,  though  valuable,  is 
proverbially  a  dear  teacher,  and  her  charge  ought  to  be  an- 
ticipated rather  than  recklessly  incurred  in  testing  impracti- 
cable ideas.  Such  ideas  can  no  more  produce  profits  than  figs 
can  grow  upon  thistles.  Their  ultimate  end  is  disaster,  and 
the  chief  purpose  of  reflection  is  to  restrict  such  disaster  to 
the  mental  world;  to  have  done  there  with  impractical  ideas, 
rather  than  have  them  externalized  as  costly  mistakes  in  brick 
and  mortar,  steel  girders  or  long-term  contracts. 

"Those  who  fail  may  say  that  this  or  that  man  had  great 
advantages,  the  fates  were  propitious,  the  conditions  were 
favorable  to  him.  Now,  there  is  very  little  in  this,"  declares 
Andrew  Carnegie;  "one  man  lands  in  the  middle  of  a  stream 
which  he  tries  to  jump,  and  is  swept  away,  and  another  tries 
the  same  feat,  and  lands  upon  the  other  side. 

"Examine  these  two  men. 

"You  will  find  that  the  one  who  failed,  lacked  judgment; 
he  had  not  trained  himself;  could  not  jump;  he  took  the 
chances.  He  was  like  the  young  lady  who  was  asked  if  she 
could  play  the  violin;  she  said  she  'did  not  know,  she  had 
never  tried.'  Now,  the  other  man  who  jumped  the  stream 
had  carefully  trained  himself ;  he  knew  about  how  far  he  could 
jump,  and  there  was  one  thing  'dead  sure'  with  him.  He  knew 
he  could,  at  any  rate,  jump  and  try  again.  He  had  shown 
judgment." 

Because  among  the  numerous  projects  available  it  selects 
those  most  likely  to  succeed,  reflection  constitutes  a  wonderful 
short-cut  to  results. 


THE  FEASIBLE  PROJECT  210 

The  "Sure  Thing"  Delusion 

The  selection  of  projects  most  likely  to  succeed,  while  es- 
sential, does  not  satisfy  the  cupidity  of  the  simple-minded  ex- 
pecting the  discovery  of  a  highly  profitable  "sure  thing." 
These  persons  are  beset  by  a  vain  delusion.  Changing  con- 
ditions in  business,  as  every  man  who  makes  money  sooner  or 
later  comes  to  recognize,  while  they  provide  the  profit-seeker 
with  opportunity,  afford  him  no  real  guarantee  that  his 
ventures  will  prove  successful.  Should  he  take  hold,  he  incurs 
risk. 

Since  prices  do  fluctuate,  what  is  easier  than  to  buy  low 
and  sell  high,  and  thereby  reap  a  fortune?  Nothing,  so  runs 
the  amateur's  opinion.  And  he  has  no  difficulty  in  pointing 
out  what  would  have  been  had  he  dealt  in  wheat  or  copper 
or  stocks.  In  actual  practice,  price  changes  prove  difficult 
to  forecast  and  have  entailed  disaster  incessantly  to  the  un- 
skilled operator. 

Inventions  have  brought  wealth  to  their  respective  in- 
ventors in  only  a  very  small  percentage  of  cases,  while  millions 
of  dollars  are  squandered  in  the  promotion  of  devices  which 
are  complete  failures  from  the  business  standpoint.  Neither 
do  improved  methods  of  production  represent  certain  gain, 
since  continual  outlays  for  experiment  and  installation  are 
involved  and  competition  is  thereby  sharpened.  Nor  does  the 
exploitation  of  natural  resources  guarantee  gain  with  no 
possibility  of  loss.  In  the  more  highly  speculative  ventures, 
such  as  gold-mining,  it  is  questionable  if  more  wealth  has 
not  been  wasted  in  non-paying  mines  than  has  been  secured 
from  rich  strikes. 

The  Risks  of  Business 

In  short,  whatever  be  the  source  of  profits  utilized,  risk 
characterizes  every  business  enterprise.  "It  is  often  a  heart- 
breaking undertaking,"   observes   John   D.    Rockefeller,   *'to 


^ 


220  THE  THINKER  IN  BUSINESS 

convince  men  that  the  perfect  occasion  which  would  lead  to 
the  perfect  opportunity  would  never  come  even  if  they  waited 
until  the  crack  o'  doom."  The  wise  executive  recognizes  risk 
as  a  factor  which  can  never  be  avoTded'arTdT  instead  of  de- 
ceiving himself  with  the  idea  of  a  "sure  thing,"  he  accepts 
each  venture  as  a  chance  whose  hazard  is  to  be  guarded 
against  and  reduced  by  deliberate,  systematic  thought. 

ihe  existence  of  risk  means  nothing  more  than  that  cer- 
tain essential  factors  are  shrouded  in  uncertainty.  Its  sys- 
tematic reduction  calls  for  a  mind  able  to  carve  its  way  intci 
this  maze  ancVlay  bare  the  factors  at  issueA 

This  power  and  the  habit  of  anaylsis  was  developed  to  a 
high  degree  in  Abraham  Lincoln  and  its  possession  was  un- 
doubtedly the  chief  cause  of  his  astonishing  advancement. 

His  mind  (we  are  told  by  W.  H.  Herndon,  who  was  for 
many  years  Lincoln's  law  partner)  ran  back  behind  facts, 
principles,  and  all  things  to  their  origin  and  first  cause  to  that 
point  where  forces  act  at  once  as  effect  and  cause.  He  would 
stop  in  the  street  and  analyze  a  machine.  Clocks,  omnibuses, 
languages,  paddle-wheels,  and  idioms  never  escaped  his  obser- 
vation and  analysis.  Before  he  could  form  an  idea  of  any- 
thing, before  he  v/ould  express  his  opinion  on  a  subject,  he  . 
must  know  its  origin  and  history  in  substance  and  quality, 
in  magnitude  and  gravity.  He  must  know  it  inside  and  out- 
side, upside  and  downside.  He  was  remorseless  in  his 
analysis  of  facts  and  principles.  When  all  these  exhaustive 
processes  had  been  gone  through  with  he  could  form  an  idea 
and  express  it;  but  no  sooner.  He  had  no  faith  in,  and  no 
respect  for,  say-so's,  come  though  they  might  from  tradi- 
tion or  authority.  Thus  everything  had  to  run  through  the 
crucible,  and  be  tested  by  the  fires  of  his  analytic  mind;  and 
when  at  last  he  did  speak,  his  utterances  rang  out  with  the 
clear  and  keen  ring  of  gold  upon  the  counters  of  the  under- 
standing. 

The  Problem-Solving  Type  of  Mind 

This  power  which  Lincoln  cultivated  so  zealously  of 
thinking   things   out   thoroughly,   the   average   man   perhaps 


THE  FEASIBLE  PROJECT  221 

envies,  yet  seldom  will  he  subject  himself  to  the  discipline 
required  for  making  it  his  own.  Although  popularly  termed 
thinking  animals,  hardly  any  of  us  really  like  to  think;  when- 
ever possible  we  all  dodge  the  task.  Nevertheless,  the  guid- 
ance of  the  large-scale  modern  enterprise  raises  problems  which 
only  persistent  thought  can  solve  and  it  is  to  be  noticed  that 
the  executives  who  under  the  new  regime  advance  themselves 
into  captaincies  of  industry  have  not  dodged  the  task.  These 
men  in  business  exhibit  the  same  problem-solving  type  of  mind 
as  did  Lincoln  in  politics. 

In  his  thirst  for  information,  E.  H.  Harriman  dug  deep 
into  the  inner  workings  of  his  railroads,  studied  rates,  towns, 
territories,  bridges,  locomotives,  rails,  ties,  and  men.  Charles 
Mellen,  when  unexpectedly  appointed  railroad  superintendent, 
proceeded  to  make  his.  home  in  the  switchyards,  baggage  cars, 
and  roundhouses,  counseling  with  switchmen,  trainmen,  engi- 
neers, firemen,  and  roundhouse  foremen,  and  in  general  put- 
ting in  eighteen  to  twenty  hours'  intensive  study  daily.  So 
insatiable  in  analyzing  the  Great  Northern's  prospects  was 
James  J.  Hill  that  his  knowledge  of  its  territory  became  al- 
most that  of  a  stage-driver.  While  other  men  were  regarding 
the  idea  of  a  transcontinental  railroad  as  entirely  chimerical, 
Collis  P.  Huntington  proposed  that  a  definite  survey  be  made, 
and  supplied  a  large  portion  of  the  funds  required.  When 
Grover  Cleveland  accepted  the  trusteeship  of  the  reorganized 
Equitable  Life  Assurance  Society  he  studied  the  matter  in 
his  thorough,  painstaking  way  until,  as  one  of  the  young  life 
insurance  presidents  used  to  say,  "the  old  man  knew  more 
about  insurance  than  any  of  us."  Convinced  years  ago  that 
science  was  to  play  an  important  role  in  steel-making,  Charles 
Schwab  says:  "In  my  own  house  I  rigged  up  a  laboratory 
and  studied  chemistry  in  the  evenings,  determined  that  there 
should  be  nothing  in  the  manufacture  of  steel  that  I  would 
not  know.     Although  I  had  received  no  technical  education, 


222  THE  THINKER  IN  BUSINESS 

I  made  myself  master  of  chemistry  and  of  the  laboratory, 
which  proved  of  lasting  value." 

The  Mastery  of  a  Business 

These  men  all  possessed  the  problem-solving  type  of  mind 
which,  early  utilized  in  dealing  with  small  matters,  enables  the 
business  man  to  move  with  firm  confidence  in  large  affairs. 
For  the  vagueness  in  which  these  large  enterprises  at  first  ap- 
pear enshrouded  disappears  upon  analysis  and  there  is  revealed 
instead  a  number  of  questions  so  specific  that  the  mind  cannot 
fail  in  due  time  to  assert  its  mastery  over  them. 

"Forty  years  ago  I  was  impressed  with  the  value  of  analysis 
in  business,"  says  John  H.  Hanan,  the  Brooklyn  manufacturer, 
"and  that  hour  was  the  beginning  of  whatever  success  I  have 
had." 

The  outstanding  fact  about  the  problem-solving  mind  is 
that  it  is  invariably  the  result  of  a  considerable  period  of  train- 
ing and  practice.  A  man  can  not  develop  a  sound  judgment 
overnight,  but  he  can  in  time  develop  it  through  solving  the 
actual  problems  of  the  small  place,  the  limited  job.  The  sub- 
ordinate position,  in  consequence,  is  not  only  a  perfectly  ade- 
quate place  to  learn  to  handle  the  big  enterprises;  it  is  practi- 
cally the  only  place. 

Getting  at  the  Essentials 

Each  problem  the  executive  is  called  upon  to  solve  con- 
stitutes a  little  world  in  itself  within  whose  labyrinths  the 
reflecting  mind  could  stay  interminably — running  over  the 
numberless  phases  of  the  question  at  issue,  seeking  out  fresh 
points  of  view,  developing  whole  crops  of  new  suggestions, 
guessing,  and  comparing.  The  true  executive  invariably  cuts 
short  this  Hamlet-like  process.  With  him  the  selection  and 
survival  of  fit  thoughts,  the  elimination  of  the  unfit,  is  vigor- 
ously attended  to;  he  thinks  with  a  purpose. 


THE  FEASIBLE  PROJECT  223 

The  following  incident,  chosen  from  many  of  its  kind,  in 
the  career  of  Thomas  A.  Edison  well  illustrates  positive 
thought  in  operation.  On  this  occasion  Mr.  Edison  had  de- 
cided to  study  a  certain  part  of  the  mechanism  of  typewriters. 

"Have  a  model  here  next  Tuesday  of  every  typewriter 
made,"  he  said  to  one  of  his  assistants.  "Have  each  com- 
pany send  an  exper^.  to  explain  its  machine.  And  get  me 
out  all  the  boolcs  in  the  library  about  tlurpiece  of  mechanism." 

Monday  evening  the  assistant  called  Mr.  Edison's  atten- 
tion to  a  stack  of  books  several  feet  high,  and  reminded  him 
of  the  appointment  next  day. 

*'Send  the  books  up  to  the  house.  I'll  look  them  over  to- 
night," said  Mr.  Edison. 

The  next  morning  he  appeared  at  the  exhibition,  and  so 
thoroughly  had  he  read  the  books  that  he  frequently  corrected 
the  experts'  explanation  of  how  their  own  machines  worked. 
The  assistant,  out  of  curiosity,  tried  reading  the  references 
that  Mr.  Edison  had  absorbed  in  one  evening,  and  it  took  all 
his  spare  hours  for  eleven  days. 

Mr.  Edison  in  his  swift  pace  had  cut  straight  to  the  mark. 
This  method  is  characteristic  of  men  who  do  things ;  they  push 
directly  along  the  great  highways  of  thought. 

Keeping  the  Right  Road 

In  the  business  world,  which  to  the  beginner  seems  a 
maze  and  which  is  sufficiently  complex  even  to  the  officials 
of  great  and  successful  corporations,  the  importance  of  dis- 
tinguishing essentials  from  non-essentials  increases  year  by 
year.  The  ability  to  manage  a  business  demands  the  applica- 
tion to  its  problems  of  the  same  habits  of  thought  which  in 
the  physical  and  natural  sciences  have  again  and  again  demon- 
strated their  effectiveness.  In  other  words,  the  business  men 
advancing  to  the  helm  of  affairs  in  this  country  must  be 
scientists — not  that  they  must  work  in  laboratories,  but  that 


224  THE  THINKER  IN  BUSINESS 

they  must  apply  the  method  common  to  all  branches  of  learn- 
ing, the  procedure  of  a  logically  trained  mind. 

Amid  phenomena  mingled  in  endless  diversity,  as  we  find 
it  in  business,  science  has  for  its  aim  the  discovery  of  true 
relationships.  Order  and  system  normally  follow  in  its  train 
however  diverse  may  be  the  field,  since  the  scientific  mind, 
immersed  as  it  may  be  in  apparently  heterogeneous  details, 
is  alert  in  detecting  similarities  and  differences,  in  weighing 
the  evidence  for  and  against  any  idea  or  statement  which  may 
present  itself.  Those  items  which  are  not  essential  in  a  given 
case  are  eliminated  and  those  which  are  actually  of  importance 
are  revealed. 

In  this  process  the  scientific  mind  is  first  of  all  ever  on  its 
guard  against  weaknesses  within  itself:  indolence,  prejudice, 
fear  of  looking  unpleasant  facts  in  the  face.  All  these  are 
errors  to  which  human  nature  in  every  age  is  subject.  "Men 
believe  easily  what  they  wish  to  believe,"  said  the  greatest 
man  of  the  greatest  empire  of  antiquity,  Julius  Caesar. 

Lord  Bacon's  Warning 

Centuries  afterward  Lord  Bacon  elaborated  the  warning 
in  his  "Novum  Organum." 

The  human  understanding,  when  any  proposition  has  been 
once  laid  down  (either  from  general  admission  and  belief, 
or  from  the  pleasure  it  affords),  forces  everything  else  to 
add  fresh  support  and  confirmation;  and  although  most 
cogent  and  abundant  instances  may  exist  to  the  contrary, 
yet  it  either  does  not  observe  or  despises  them,  or  gets  rid 
of  and  rejects  them  by  some  distinction,  with  violent  and 
injurious  prejudice,  rather  than  sacrifice  the  authority  of 
its  first  conclusions.  It  is  the  peculiar  and  perpetual  error 
of  the  human  understanding  to  be  more  moved  and  excited 
by  affirmatives  than  negatives,  whereas  it  ought  duly  and 
regularly  to  be  impartial ;  nay,  in  establishing  any  true  axiom 
the  negative  instance  is  the  more  powerful. 

The  human  understanding  resembles  not  a  dry  light,  but 
admits  a  tincture  of  the  will  and  passions,  which  generate 


THE  FEASIBLE  PROJECT  225 

their  own  system  accordingly;  for  man  always  believes 
more  readily  that  which  he  prefers.  He,  therefore,  rejects 
difificulties  for  want  of  patience  in  investigation;  sobriety,  be- 
cause it  limits  his  hope;  the  depths  of  nature,  from  super- 
stition ;  the  light  of  experiment,  from  arrogance  and  pride, 
lest  his  mind  should  appear  to  be  occupied  with  common 
and  varying  objects;  paradoxes,  from  a  fear  of  the  opinion 
of  the  vulgar;  in  short,  his  feelings  imbue  and  corrupt  his 
understanding  in  innumerable  and  sometimes  imperceptible 
ways. 

The  Danger  of  Deceiving  Oneself 

The  danger  so  impressively  pointed  out  here  is  real.  The 
inevitable  consequence,  should  one  not  take  the  proper  steps 
to  avoid  it,  is  the  appearance  of  that  most  serious  of  all  defects 
in  the  otherwise  practical  man — self-deception. 

"When  a  man's  affairs  are  not  going  well,  he  hates  to 
study  the  books  and  face  the  truth,"  says  Mr.  Rockefeller 
in  explaining  his  procedure.  "From  the  first,  the  men  who 
managed  the  Standard  Oil  Company  kept  their  books  intelli- 
gently as  well  as  correctly.  We  knew  how  much  we  made 
and  where  we  gained  or  lost.  At  least,  we  tried  not  to  deceive 
ourselves." 

"Things  and  actions  are  what  they  are,  and  the  conse- 
quences of  them  will  be  what  they  will  be;  why  then  should 
we  desire  to  be  deceived?"  asks  Bishop  Butler.  The  victim 
of  this  ostrich-like  ignoring  of  the  facts  is  able  to  make  no 
satisfactory  reply  to  the  Bishop. 

We  as  business  men  must  recognize  the  warping  effects 
upon  the  judgment  both  of  prejudice  and  of  prepossessions, 
must  seek  to  retain  the  open-mindedness  with  which  as_  chil- 
dren we  were  endowed,  and  yet,  in  fulfillment  of  the  respon- 
"sTbilities  resting  upon  us,  must  investigate  systematically  and 
without  ceasing  each  problem  which  is  ours  to  solve.  ^ 

"Separate  the  problem  from  yourself;  think  of  it  as  a 
fascinating  episode  that  happened  years  ago,"  is  the  advice 


226  THE  THINKER  IN  BUSINESS 

of  Dean  Gay  of  the  Harvard  School  of  Business  Administra- 
tion. 

Procedure  at  the  General  Electric  Plant 

When  the  problem-solving  type  of  mind  faces  some  new 
problem,  what,  in  general,  is  its  method  of  operation?  The 
answer  to  this  question,  in  terms  familiar  to  the  business  man, 
appears  clearly  in  this  incident  which  took  place  in  the  shops 
of  the  General  Electric  Company.  The  manager  of  one  of  the 
departments  had  observed  the  need  for  a  new  type  of  circuit 
breaker,  as  the  breaker  then  in  use — an  electrical  switch  con- 
sisting of  a  handle  and  three  copper  prongs  fitting  into  grooves 
— was  not  satisfactory.  His  procedure  according  to  the  ac- 
count in  World's  Work  was  thus : 

At  eleven  o'clock  an  idea  occurred  to  him  and  by  two  in 
the  morning  he  had  worked  out  three  definite  forms. 

The  next  morning,  he  called  in  one  of  his  assistants, 
explained  his  third  form  to  him,  and  told  him  not  to  report 
at  the  works  again  until  he  had  made  the  sketches  that 
would  put  it  in  shape  to  be  explained  to  the  management. 
Two  days  later  the  assistant  brought  in  the  sketches.  The 
two  men  discussed  them.  Changes  had  to  be  made.  Two 
more  trials  were  necessary  before  the  sketches  were  in  shape 
to  show  to  the  technical  director  of  the  works. 

Then  the  invention  went  through  these  steps;  a  confer- 
ence with  the  sales  department  to  determine  at  what  price 
the  device  must  be  sold  to  be  successful ;  an  appropriation 
to  cover  the  development  of  the  device  (working  drawings 
and  models)  ;  the  making  of  an  original  set  of  working 
drawings ;  discussion  of  the  drawings  by  the  management 
and  their  approval ;  the  making  of  a  model  by  the  model 
shop;  another  conference  on  objections  from  the  sales  de- 
partment to  the  form  of  the  device;  tests  of  the  model  for 
practical  work ;  the  correction  of  the  defects  shown  by  the 
model  in  practice ;  the  correction  of  the  drawings  to  corre- 
spond to  the  revised  model ;  the  designing  of  models  of  the 
device  in  different  sizes;  an  appropriation  for  the  manufac- 
turing of  the  device  in  lots  of  loo  for  general  sale;  the  draw- 
ing up  and  filing  of  an  application  for  a  patent;  the  giving 
of  instructions  how  to  build  it,  from  the  engineering  de- 


THE  FEASIBLE  PROJECT  227 

partment  to  the  factory;  the  inventing  and  building  of  the 
machinery  necessary  to  manufacture  the  device  in  large  lots ; 
and  a  test  of  the  first  product. 

From  the  manager's  idea  to  the  completion  of  the  first 
commercial  sample  took  six  months;  and  from  the  comple- 
tion of  the  sample  to  the  time  when  the  device  was  being 
manufactured  in  all  sizes  as  a  commercial  product,  took 
two  months  more.  To  perfect  the  invention  and  carry  it  to 
the  point  where  the  first  lots  were  put  on  sale,  cost  the  com- 
pany $4,000. 

The  Systematic  Elimination  of  Risk 

The  problem-solving  type  of  mind  faced  with  a  newly 
created  problem  in  general  concerns  itself  with : 

1.  Analysis;  what  are  the  factors  at  issue? 

2.  Evidence;  what  are  the  facts  involved? 

3.  Experience;  what  results  are  shown  in  practice? 

These  three  processes — analysis,  the  use  of  evidence,  and 
the  test  of  practice — as  evolvers  of  the  practical  idea  proceed 
together,  inextricably  interwoven.  Their  combined  effect  is 
the  systematic  eUmination  of  risk. 

How  far  shall  the  elimination  of  risk  be  pursued  in  the 
case  of  those  stirring  new  projects  proffered  us  more  or  less 
continually  by  the  creative  impulse?  Since  even  to  the  most 
conservative,  who  in  consequence  must  be  satisfied  with  the 
smallest  of  returns,  the  proposition  100  per  cent  certain  con- 
tinues to  exist  as  an  ideal  unrealized,  the  business  man  does 
not  hesitate  to  accept  a  certain  degree  of  risk.  His  aim  is 
simply  the  reduction  of  risk  until,  in  proportion  to  the  chances 
for  profit,  it  becomes  reasonable;  and  the  use  of  his  problem- 
solving  machinery  beyond  that  point  represents  unprofitable 
expenditure. 

"The  trained  mind,"  as  Professor  Dewey  points  out,  "is 
the  one  that  best  grasps  the  degree  of  observation,  forming 
of  ideas,  reasoning,  and  experimental  testing  required  in  any 


228  THE  THINKER  IN  BUSINESS 

special  case,  and  that  profits  the  most,  in  future  thinking,  by 
mistakes  made  in  the  past." 

Superior  Reasoning  Ability  in  Practice 

Let  us  assume  that  the  financing  of  three  industrial  enter- 
prises, the  propositions  similar  in  all  essential  respects,  is  laid 
before  bankers  A,  B,  and  C  respectively.  Under  ideal  condi- 
tions the  investigation  required  would  cost  $20,000;  A,  whose 
problem-solving  machinery  works  at  an  efficiency  of  90  per 
cent,  spends  $22,222,  whereas  B,  whose  similar  efficiency  is 
80  per  cent,  requires  $25,000,  and  C,  whose  rating  is  but  50 
per  cent,  needs  $40,000.  In  comparison  with  A,  B  is  handi- 
capped $2,222  and  C  $17,778.  Or  on  the  other  hand,  sup- 
posing that  the  three  expend  the  same  amounts,  B  and  C 
will  still  be  handicapped  in  that  they  will  be  assuming  more 
serious  risks  than  A. 

The  problem-solving  type  of  mind,  because  of  the  superior 
effectiveness  with  which  it  operates  in  this  respect  as  com- 
pared with  the  average  intelligence,  secures  its  possessor  equal 
risk  at  less  cost  in  time  and  effort  or  less  risk  at  equal  cost. 


Exercises 

First  Ideas 

Ideas  for  the  making  of  profits  are  continually  occurring  to  you. 
Our  exercise  concerns  these.  Make  a  list  of  the  first  ten  such  ideas 
as  they  come  to  your  mind  entering  them  upon  Test  Chart  13.  Do 
not  examine  them  critically;  in  fact,  do  not  examine  them  at  all,  but 
simply  make  a  note  of  each  in  order  as  they  appear  until  ten  have 
been  collected.  Next  put  each  through  the  tests  outlined  in  this 
chapter. 

In  their  original  form,  do  your  ideas  possess  high  or  low  chances 
of  winning  you  the  profits  desired? 

The  Sifting  of  Ideas 

Men  will  differ  in  the  percentages  shown,  the  imaginative  mind 
which  tumbles  out  projects  ceaselessly  showing  naturally  a  higher 


i 


THE  FEASIBLE   PROJECT 


229 


mortality  rate  in  its  ideas  than  the  slower,  more  methodical  thinker. 
What  does  this  exercise  reveal  to  you  regarding  the  relative  im- 
portance  for   profit   making  of   original   ideas   and   the   means   for 


Venture  as 
First  Conceived 

Modifications  I 
Subsequently 
Made  in  Idea 

Total 

Profits 

Secured 

Of  Profits 
Original 

Idea  Contrib- 
uted This 

Percentage 

I. 
2. 

3- 

4- 

5. 

6. 

7- 

8. 

9- 

10. 

Average  Per  Cent  Due  to  Originai 

.  Idea 

..% 

Test  Chart  13.     History  of  Ten  Ventures 

rendering  them  practical?  Does  your  strengfth  lie  primarily  in 
initiative  or  in  judgment  ? 

Practical  ideas,  we  may  conclude,  are  those  fitted  to  survive  the 
struggle  for  existence  which  takes  place  among  the  ideas  evolved 
within  the  mind.  They  represent  at  all  times  the  result  of  a  more 
or  less  persistent,  oftentimes  laborious  and  painful,  process  of  selec- 
tion.    This  is  necessarily  so. 

'■Roasted  pigeons  don't  fly  into  one's  mouth,"  is  the  way  Daniel 
Guggenheim,  President  of  the  American  Smelting  and  Refining  Com- 
pany, puts  it.  "You  have  to  find  a  pigeon,  you  have  to  be  able  to 
shoot  him,  then  you  must  clean  him  and  roast  him  before  you  can 
eat  him.    So  it  is  with  business." 

The  severe  death  rate  which  prevails  among  the  products  of  our 
creative  impulse  is  by  no  means  peculiar  to  executives  but  holds  true 


230 


THE  THINKER  IN  BUSINESS 


of  all  men  producing  ideas  at  once  original  and  practical.  The 
business  man  loath  to  train  his  problem-solving  apparatus  upon  some 
idea  with  which  he  for  the  time  being  is  captivated,  may  ponder  with 
profit,  therefore,  the  words  of  the  famous  scientist  Michael  Faraday : 
"The  world  little  knows  how  many  of  the  thoughts  and  theories 
which  have  passed  through  the  mind  of  a  scientific  investigator, 
have  been  crushed  in  silence  and  secrecy  by  his  own  severe  criticism 
and  adverse  examination ;  that  in  the  most  successful  instances  not 
a  tenth  of  the  suggestions,  the  hopes,  the  wishes,  the  preliminary 
conclusions  have  been  realized." 


CHAPTER  XIII 

TESTS  OF  REASONING 

We  must  not  then  add  wings  but  rather  lead  and  ballast  to 
the  understanding,  to  prevent  its  jumping  and  flying. — Sir 
Francis  Bacon. 

Exact  Knowledge  Needed 

"Modern  scientific  management,"  says  Vice-President  Peck 
of  the  Link  Belt  Company,  "is  exactly  what  the  name  implies 
— management  based  on  knowledge — on  ascertained  facts 
rather  than  on  opinions,  however  brilliant,  of  workman,  fore- 
man, superintendent,  or  manager."  The  last  word  has  the 
significance.  The  wise  executive,  while  relying  ultimately  on 
his  own  judgment,  checks  up  his  own  opinion  by  the  opinions 
of  others  who  approach  the  problem  from  different  angles. 
But  more  than  opinion  he  seeks  information,  definite  and  clear 
statements  of  observed  facts  bearing  on  the  case  in  hand. 

Sources  of  Information 

Where  is  such  information  to  be  derived?  Where  not? 
Reports  of  every  description  come  to  hand,  from  within  the 
organization  and  from  outside.  Information  comes  through 
visits  of  inspection  and  investigation;  through  conferences 
both  official  and  informal;  through  correspondence,  official 
and  personal;  through  reading  of  trade  papers,  government 
publications,  and  books. 

The  range  of  persons  concerned  in  providing  information 
for  the  executive  is  equally  great.  It  includes  his  fellow 
officers.  It  includes  his  subordinates  of  all  ranks,  who  are 
perhaps  nearest  to  actual  conditions.  Then  there  are  the 
official   investigators   and   examiners — the   auditor,    the   field 

231 


232  THE  THINKER  IN  BUSINESS 

investigators,  the  lengthening  list  of  specialists :  statisticians, 
chemists,  cost  experts,  etc.  Finally,  in  the  case  of  most 
shrewd  and  successful  executives,  there  are  counselors  on 
the  outside  whom  he  calls  in  when  necessary. 

Testing  the  Evidence 

The  information  which  these  several  sources  focus  upon 
the  executive's  desk  varies  widely  in  value.  Part  of  it  is 
truth  itself,  part  the  beliefs  of  misguided  yet  sincere  persons, 
part  the  work  of  deliberate  falsifiers.  The  testimony  must  be 
subjected  to  searching  criticism  before  final  acceptance. 

Criticism,  analysis,  is  the  necessary  complement  of  imagi- 
nation. Imagination  sees  the  whole  in  the  part — the  finished 
work  in  the  specimen.  It  says :  What  I  have  seen  leads  me 
to  believe  that  the  whole  enterprise  (or  article)  will  be  valua- 
ble, sound,  profitable,  etc.,  providing  the  portions  yet  to  be 
filled  in  are  up  to  certain  standards  of  execution,  etc.  Analysis 
makes  sure  that  the  parts  are  all  filled  in  and  that  they  are  up 
to  specifications.  It  takes  an  inventory.  It  cross-examines 
the  new  plan.  It  goes  over  every  item  of  the  proposition  and 
tests  it  out  sternly,  making  no  allowances,  assuming — in  order 
to  be  safe — that  what  is  not  present  perhaps  is  wrong,  unfa- 
vorable, hostile. 

How  can  we  test  our  ideas,  test  that  deliberately  controlled 
sequence  of  ideas  which  we  call  thinking?  Chiefly  by  going 
over  the  steps  of  the  process  to  see  whether  we  have  made 
mistakes.  This  is  the  method  which  all  of  us  use.  The 
scientist  does  the  same  things  as  the  untrained  man,  only 
more  carefully  and  systematically.  The  untrained  man  rarely 
takes  a  trial  balance  of  the  evidence  for  and  against  a  certain 
view.  He  assumes  as  a  matter  of  course  that  his  mental 
processes  are  accurate  and  sufficient  and  acts  accordingly, 
whereas  the  scientist  tests  his  thought  constantly,  making  sure 
of  every  step  he  takes. 


TESTS  OF  REASONING 


233 


Systematic  and  Accurate  Procedure 

When  the  untrained  man  does  test  his  thought,  moreover, 
he  is  apt  to  do  it  unsystematically,  whereas  the  scientist  is 
careful  to  use  orderly,  even  procedure.  Knowing  the  prone- 
ness  of  the  mind  to  jump  the  track,  the  scientist  observes 
strictly  the  rules  of  the  game  while  analyzing;  he  is  careful 
to  pin  down  each  idea  in  a  set  place  and  order. 

But  the  most  important  difference  is  this — the  scientist 
strikes  for  essentials  and  thereby  makes  his  analysis  at  once 
swifter  and  more  accurate. 

Analysis,  criticism,  is  not  mere  faultfinding.  Mere  fault- 
finders are  often  among  the  most  easily  deceived;  they  do 
not  know  where  the  weak  spots  are.  When  the  Twentieth 
Century  stops  at  junction  points  in  its  wonderful  run,  train- 
men with  torch  and  hammer  go  along  tapping  wheels  and 
axles,  here  and  there.  It  is  quickly  done — just  a  light  tap 
at  a  certain  point.  Untrained  men,  merely  because  they  do 
not  know  the  critical  points  where  the  strain  comes,  might  tap 
all  over  the  wheel  yet  miss  the  weak  spot . 

Analysis  for  the  Executive 

The  system  of  analysis  or  critical  method  which  the  man 
in  an  executive  position  is  to  use,  if  it  is  to  secure  him  superior 
results,  should  have  three  characteristics : 

1.  It  should  be  reliable  and  accurate. 

2.  It  should  be  generally  applicable  to  all  sorts  of  ideas, 

problems,  etc. 

3.  It  should  be  simple  and  quick. 

The  man  in  an  executive  position  is  obliged  to  decide  many 
different  kinds  of  questions.  In  most  cases  he  cannot  pretend 
to  expert  knowledge,  since  knowledge  in  any  line  comes  only 
after  long,  specialized  study  and  experience.  He  has  all  kinds 
of  problems  put  up  to  him  by  his  subordinates,  all  of  whom 


234 


THE  THINKER  IN  BUSINESS 


are  individuals  with  divergent  information  and  different  view- 
points. It  is  necessary,  unless  the  business  is  to  slump  or 
the  tenure  of  his  job  is  to  be  terminated,  for  him  to  give  sub- 
stantially the  right  answer  to  question  after  question. 

The  executive  faced  with  these  various  problems  never  for- 
gets also  that  he  is  in  charge  of  a  going  concern,  which  means 
that  decisions  must  be  prompt.  He  is  in  a  very  different  posi- 
tion from  that  of  the  scientist  in  his  laboratory,  or  the  judge  in 
a  court  of  law.  The  judge,  for  instance,  has  practically  all 
the  time  he  wishes,  and  he  has  at  hand  a  carefully  selected  and 
classified  array  of  the  opinions  of  other  judges  on  this  point. 

The  executive  needs,  in  order  to  make  headway,  a  reliable 
working  apparatus  for  testing  ideas,  proposals,  and  methods. 
If  the  plan  passes  this  scrutiny,  and  if  it  is  important  in  any 
way,  it  may  then  be  tested  more  deliberately  by  the  persons  of 
special  knowledge  who  are  familiar  with  the  case. 

What  Does  the  Idea  Mean? 

The  first  step  in  .testing  an  idea,  method,  or  proposal,  is  to 
see  what  it  means.  Express  it  in  terms  of  your  habitual  ac- 
tivity so  that  you  are  sure  of  just  what  is  implied  by  every 
part  of  it. 

This  would  seem  a  matter  of  course,  and  yet  hardly  any 
step  is  more  neglected  in  common  life.  The  lawyer  scruti- 
nizes at  once  the  language  of  the  statute,  or  the  contract  on 
which  his  case  depends.  The  chemist  proceeds  at  once  to  an 
analysis  of  elements  in  the  specimen  placed  in  his  hands.  But 
the  **busy"  executive  often  jumps  at  the  meaning  of  a  pro- 
posal without  translating  it  with  any  definiteness  into  the 
terms  of  his  actual  business  life.  A  large  proportion  of  the 
difficulties  and  misunderstandings  which  the  executive  has 
to  adjust  come  from  neglect  on  someone's  part  to  grasp  the 
exact  significance  of  a  proposal,  or  order,  or  explanation. 
It  is  as  if  a  purchasing  agent  were  to  order  goods  on  every 


TESTS  OF  REASONING 


235 


requisition  placed  in  his  hands  without  troubling  himself  to 
see  whether  they  are  already  in  the  stores  department.  The 
fact  is  that  many  proposals,  improved  methods,  etc.,  reveal 
their  futility  at  once  when  we  grasp  their  plain  meaning. 

The  psychologists  call  this  part  of  the  testing  process 
"definition  of  terms."  The  phrase  is  useful  if  we  keep  in 
mind  that  we  are  concerned  here  not  with  words  but  with 
ideas.  Lincoln  was  particularly  good  at  this^  and  it  con- 
tributed largely  tqjiis^success.  A  man  who  sees  clearly  the 
object  which  is  held  before  his  eyes  knows  at  once,  in  most 
cases,  whether  or  nc^t  he  likes  it.  So  when  a  person  com- 
prehends what  a  proposed  business  plan  implies  he  can  gen- 
erally decide  at  once  whether  it  is  worth  investigating.  Time 
and  care  spent  at  this  point  will  invariably  save  time  and  effort 
later  on.  Furthermore,  it  is  the  necessary  basis  for  other  tests. 
When  the  Government's  coal  order  came  in  the  winter  of 
1918,  stopping  work  on  Mondays,  the  suggestion  was  made 
to  lengthen  the  working  day  for  the  rest  of  the  week  to  an 
equivalent  extent.  The  office  manager  had  to  consider  vari- 
ous items  before  he  understood  the  meaning  of  that  proposal. 
"It  would  involve  altered  arrangements  for  light  and  heat, 
^Janitor  and  elevator  service,  and  the  making  of  new  shipping 
and  mailing  schedules,  etc.  It  would  involve  also  the  difficul- 
ties, real  and  fancied,  which  employees  might  have  in  adjust- 
ing themselves  to  the  changed  hours.  When  he  knew  what 
the  proposal  really  meant,  for  his  business,  he  was  prepared 
to  consider  its  value. 

Competence  of  the  Witness 

Once  we  know  what  an  idea  means  the  next  question  is 
usually:  Who  brings  it  up?  Merchandising  plans  suggested 
by  the  advertising  manager  of  Wanamaker's  will  arrest  the 
attention  of  any  merchant.  The  fact  that  a  plan  brings  an 
introduction   from  a  good  source   does  not  prove  that  we 


236  THE  THINKER  IN  BUSINESS 

should  accept  it,  but  it  is  warrant  for  admitting  it  to  the 
waiting  room  for  closer  scrutiny. 

In  estimating  the  credibility  of  a  witness  we  consider 
mainly : 

1.  His  General  Intelligence  and  Standing.  A  matter 
brought  up  by  a  trusted  official  of  the  company  has  the  pre- 
sumption of  an  attentive  and  favorable  hearing — so  with  one 
brought  up  by  an  old  customer  in  good  standing,  or  the  repre- 
sentative of  a  well-known  firm,  even  though  there  have  been 
no  previous  dealings  with  him. 

2.  His  Knowledge  of  the  Particular  Case  in  Hand.  The 
opinion  of  an  expert  on  his  specialty — of  the  head  bookkeeper 
regarding  ledger  systems,  the  janitor  regarding  ventilation, 
cleaning,  etc.,  the  clerks  in  the  mailing  department  regarding 
starnping  or  letter-opening  machines — merits  always  careful 
consideration. 

3.  His  Freedom  from  Bias.  This  is  a  necessary  check 
on  the  preceding  test;  the  expert  is  usually  more  or  less 
swayed  by  prejudice  regarding  his  specialty.  One  who  is 
"on  record"  with  regard  to  a  particular  matter  is  not  often 
entirely  open-minded  in  his  attitude. 

4.  His  Honesty;  How  Far  He  is  Swayed  by  Self-interest. 
This  test  is  constantly  in  use  by  the  man  in  an  executive  posi- 
tion. Most  of  the  proposals  of  all  sorts  which  come  before 
him  are  some  way  bound  up  with  intentions  of  profit  for 
someone.  He  must  decide  how  far  the  statement  or  the  con- 
duct of  a  person  concerned  is  to  be  taken  as  sincere;  to  be 
relied  on.  Often  the  expert,  of  even  high  intelligence,  must 
lie  under  suspicion  because  of  the  possibility  of  self-interest. 

The  Idea  Itself 

I.  Its  Apparent  Reasonableness.  A  third  test  considers 
the  idea  by  itself.  Does  it — for  one  thing — appear  consistent 
with  well-established  experience;  with  other  known  facts  in 


i 


TESTS  OF  REASONING 


237 


the  caee;  with  itself?  As  a  rule  this  test,  like  the  preceding, 
gives  only  presumption.  Nearly  every  original  idea  seems 
more  or  less  unreasonable,  inconsistent,  at  first  sight.  Never- 
theless, the  test  is  of  great  practical  usefulness,  in  warning 
us  to  be  cautious  as  to  further  investigation.  Sometimes  it 
is  decisive,  revealing  fatal  dishonesty  or  error.  The  lawyers 
use  it  constantly  in  this  way.  On  one  occasion  Lincoln  was 
defending  a  man  charged  with  murder — the  Grayson  case. 
He  obtained  from  the  chief  witness  for  the  prosecution  the 
sworn  statement  that  he  had  himself  seen  the  shooting  by 
the  light  of  the  moon.  Then  Lincoln  proved  from  an  almanac 
that  there  was  no  moon  on  the  night  in  question. 

2.  Its  Importance.  This  test  of  the  importance  of  an  idea 
is  used  constantly  by  every  man  in  practical  life.  Supposing 
that  a  given  statement  is  true  or  that  a  suggested  plan  will 
work,  what  difference  will  it  make  on  the  whole?  Is  the 
amount  at  stake  in  one  or  another  way  sufficient  to  justify 
possible  interference  with  other  matters?  Does  it  justify 
even  further  investigation?  Many  a  project,  irreproachable 
but  trivial,  is  shown  the  door  at  this  point. 

On  the  other  hand,  the  executive  with  insight  sometimes 
perceives  a  profoundly  important  issue  at  stake  in  something 
which  appears  to  be  trivial — as  Henry  Ford  did  in  the  case 
of  the  radiator  cap.     (See  Chapter  X.) 

Correctness  of  the  Process  of  Reasoning 

Finally,  we  may  test  the  reasoning,  the  accuracy  that  is 
to  say,  of  the  process  by  which  one  thought  leads  to  another. 
This  is  the  most  certain,  but  the  most  difficult  way  of  testing. 

Reasoning  consists  of  a  series  or  chain  of  judgments. 
You  know — or  believe — that  a  certain  thing  is  true.  You 
discover  that  that  thing  depends  upon  another  so  closely  that 
if  the  first  is  true  the  second  must  be  equally  true.  This  in 
its  turn  you  discover  depends  with  equal  closeness  upon  a 


238  THE  THINKER  IN  BUSINESS 

third.  You  accept  the  third  accordingly  as  equally  true,  and 
so  on. 

Psychologists  and  lawyers,  who  must  do  their  work  thor- 
oughly, have  carefully  worked  out  and  classified  the  more 
frequent  defects  of  reasoning,  the  ways  in  which  we  may  be 
deceived  in  passing  from  one  judgment  to  another,  and  have 
indicated  convenient  methods  of  detecting  these  errors.  The 
difficulty  is  that  these  classifications  made  by  psychologists 
and  logicians  for  their  own  use  are  far  too  detailed  and  com- 
plicated for  the  busy  executive.  They  are  to  be  used  by 
specialists.  We  may  simplify  these  "rules,"  "tests,"  "canons," 
etc.,  applied  to  the  process  of  reasoning  somewhat  as  follows : 

When  we  seek  to  test  the  soundness  of  any  argument, 
any  process  of  reasoning  whatever,  we  should  apply  to  it  the 
following  three  questions  in  as  much  detail  as  seems  necessary. 

Correctness  of  Premises 

1.  Are  the  "premises,"  that  is,  the  successive  statements 
as  to  fact,  accurate,  correct?  This  is  really  applying  to  the 
single  statements  the  test  applied  above  to  the  whole  idea. 
Often  errors  are  discovered  at  this  point.  Take  for  example 
the  argument: 

Interference  with  another  man's  business  is  illegal. 
Underselling  interferes  with  another  man's  business. 
Therefore  bargain  sales  are  illegal. 

Here,  as  a  little  reflection  shows,  the  term  "interference 
with  another  man's  business"  is  used  in  two  different  senses 
in  the  first  and  second  statements. 

Incorrect  Sequence — Analogy 

2.  Do  the  premises  really  lead  to  the  conclusion  offered? 
Under  this  come  at  least  two  possible  cases: 


fja^ 


TESTS  OF  REASONING 


239 


(a)  Is  the  apparent  connection  of  premises  with  con- 

clusion merely  accidental ;  for  instance,  is  the  rela- 
tion of  premises  and  conclusion  merely  one  of 
analogy  f 

The  following  instance  seems  so  extravagant  as  to  be 
quite  improbable,  yet  we  have  all  known  apparently  sensible 
persons  to  reason  just  as  hastily: 

"I  positively  refuse  to  employ  any  cashier  in  this  bank 
who  wears  rubber  heels,"  declared  the  president  of  a  fairly 
prominent  bank.     "Such  a  man  is  dishonest." 

It  was  found  that  a  former  cashier,  who  wore  rubber 
heels,  had  absconded  with  funds  sufficient  to  entail  a  heavy 
loss  upon  the  institution. 

In  advocating  business  plans  the  temptation  to  use  analogy 
is  constant.  It  is  not  always  so  easily  detected  as  in  the  fol- 
lowing from  a  prospectus : 

"The  history  of  the  Standard  Oil  Company  is  known  by 
everybody  from  Maine  to  California,"  announces  a  promoter, 
with  much  truth.  "It  is  the  greatest  money-making  industry 
in  the  world.  The  X  Y  Z  Company  does  not  expect  to  achieve 
such  great  financial  success  as  the  Standard  Oil  Company,  but 
it  is  in  the  same  line  of  business — refining — and  therefore  its 
stock  should  be  purchased  for  the  very  great  profits  that  seem 
to  be  assured  for  those  who  invest  now  in  its  treasury  stock." 

Of  course  the  fact  that  one  oil  company  has  succeeded  is 
by  no  means  proof  positive  that  another  will  do  so. 

Incorrect  Sequence — Evidence  Not  Sufficient 

The  second  case  under  this  head  is  even  more  troublesome : 

(b)  Is  the  inference  of  conclusion  from  premises  based 

upon  too  few  instances,  or  upon  those  which  are 
not  representative? 

This  IS  one  of  the  chief  causes  of  faulty  reasoning  in  life 


240  THE  THINKER  IN  BUSINESS 

and  in  business.  It  is  important  but  often  difficult  to  recollect 
that  one  swallow  does  not  make  a  summer.  The  apparent 
success  of  a  plan  in  a  few  cases,  of  which  we  have  heard, 
cannot  safely  be  taken  as  conclusive.  In  important  matters 
a  decision  should  be  based  on  instances  which  are  sufficient. 
The  following  is  from  an  advertisement  of  a  school  of 
advertising : 

Walter  McMillan  will  serve  as  a  good  illustration  of  a 
young  man  who  "woke  up."  He  was  employed  as  a  clerk  by 
the  Armour  Packing  Company  of  Kansas  City,  with  nothing 
in  prospect  but  the  desk  with  its  endless  drudgery.  He  read 
the  signs  correctly,  and  after  careful  investigation  decided 
that  the  Carlton  College  of  Advertising  could  give  him  the 
thorough,  practical  advertising  education  he  craved.  Al- 
most immediately  after  completing  the  course  he  was  re- 
ferred by  the  college  to  the  Kansas  City  Journal,  where  he 
started  at  just  four  times  the  salary  he  was  receiving  in 
his  former  position.  He  is  there  today  and  has  been  still 
further  advanced.  What  Mr.  McMillan  has  done  you  can  do. 

Interesting  but  not  conclusive.  The  formula  *'clerk4- 
Carlton  College  of  Advertising  course = newspaper  position 
4-4  times  former  salary"  is  far  from  universal. 

An  engineering  company  constructing  a  large  power-plant 
dam  was  investigating  the  local  rainfall  and  flood  conditions. 
All  the  records  for  18  years  back  showed  moderate,  even  rain- 
fall and  no  floods.  But  the  investigators  were  not  satisfied; 
they  went  back  further  yet;  and  they  found  that  for  the 
preceding  18-year  period  the  records  showed  heavy  rains  and 
repeated  floods. 

In  all  matters  upon  which  statistics  are  supposed  to  be  the 
final  authority  it  is  well  to  note  whether  or  not  these  statistics 
cover  sufficient  cases  to  justify  the  conclusions  drawn  from 
them.  The  police  reports  in  a  certain  Massachusetts  town 
showed  that  its  Turkish  population  was  criminal  to  the  aston- 
ishing degree  of  300  per  cent !  Inquiry  elicited  the  fact,  how- 
ever, that  said  Turkish  population  consisted  of  one  man,  who 


TESTS  OF  REASONING 


241 


had  been  jailed  for  drunkenness  three  times !  Errors  of  this 
nature  have  been  responsible  for  the  famous  remark  that 
there  were  three  grades  of  liars;  plain  liars,  d — d  liars,  and 
statisticians ! 

Factors  Overlooked 

3.  Have  other  and  presumably  important  factors  in  the 
case  been  left  out  of  consideration? 

This  is  the  most  frequent  and  most  troublesome  error  for 
the  business  executive.  The  question  he  has  to  decide  con- 
cerns the  future — is  it  probable  that  such  and  such  an  action 
will  be  on  the  whole  beneficial,  profitable?  Where  human 
action  is  involved  the  factors  are  many  and  variable. 

"The  winter  before  our  ventilation  system  was  installed," 
so  runs  the  advertisement  of  a  well-known  manufacturer,  "in 
this  insurance  company  27^  per  cent  of  the  employees  were 
absent  owing  to  illness;  the  installation  of  our  system  the  next 
winter  cut  this  down  to  75^  per  cent." 

Not  proved.  Perhaps  a  mild  winter,  or  the  absence  of 
epidemics,  or  the  engagement  of  a  company  physician,  or  the 
installation  of  a  different  heating  system,  etc.,  may  have  been 
even  more  responsible  than  the  ventilation  system  for  this  de- 
crease from  2.'jy2  to  7^  per  cent. 

This  example  could  be  paralleled  no  doubt  in  the  daily  ex- 
perience of  almost  every  executive.  The  prudent  man  learns 
to  look  on  all  sides  of  a  proposal  before  he  lets  his  mind  come 
to  a  final  conclusion. 

Validity  of  These  Tests 

This  system  described,  we  must  repeat,  consists  merely  in 
applying  more  deliberately  and  systematically  the  same  sort 
of  tests  which  we  all  apply  in  matters  of  daily  life;  whether 
or  not  to  carry  an  overcoat  this  morning,  whether  to  take 
this  road  or  that,  on  a  drive.    In  most  of  these  little  personal 


242  THE  THINKER  IN  BUSINESS 

matters  our  mental  action  is  so  swift  as  to  be  practically  auto- 
matic— they  are  attended  to  by  the  lower  nerve  centers,  as 
explained  in  Chapter  X — yet  if  we  check  up  our  actions  we 
find  that  we  are  really  applying  these  tests  of  thinking  one  by 
one,  until  we  are  satisfied. 

The  same  tests  expressed  in  more  formal,  complete, 
lengthy  terms  constitute  a  very  important  part  of  the  subject 
matter  of  psychology  and  logic,  the  sciences  which  deal  espe- 
cially with  the  way  the  human  mind  works.  These  tests  accu- 
rately and  systematically  applied — whether  the  statement  of 
them  be  elaborate  or  brief — will  guide  us  safely  in  estimating 
business  methods  and  projects.  In  fact,  there  are  no  other 
tests  for  careful  human  thinking. 


Exercises 

Problems  in  Analysis 

As  an  exercise  for  developing  the  judgment  let  us  consider  certain 
problems  in  analysis.  In  the  process  of  analysis,  similarities  and 
differences  are  detected  and  upon  these  as  a  basis  classifications  are 
made.  Study  the  following  rules,  noting,  of  course,  the  errors  used 
for  purpose  of  illustration  and  preparing  answers  to  the  questions: 

1.  Every  division  is  based  upon  differences  in  some  attribute  com- 
mon to  all  the  members  of  the  whole  to  be  divided.  In  classifying 
businesses  as  individual  proprietorships,  partnerships,  or  corporations, 
what  has  been  taken  as  the  common  attribute?  A  statistical  com- 
pany recently  issued  a  circular  in  which  industrial  stocks  were  re- 
ferred to  as  coppers,  leathers,  oils,  steels,  motors,  and  marines.  What 
was  the  basis  of  classification  here  chosen? 

2.  Each  division  in  order  to  be  consistent  must  rest  upon  one  com- 
mon attribute.  Should  businesses  be  classified  as  individual  pro- 
prietorships, partnerships,  and  monopolies,  what  is  the  basis  of  clas- 
sification taken  for  the  first  two?  for  the  third? 

3.  The  various  groups  must  be  mutually  exclusive.  A  young  em- 
ployment manager  in  his  report  was  found  to  have  classified  the 
factory's  employees  into  administrative,  machine  shop,  foundry,  as- 
sembly, and  Austrians.     In  another  instance  the  purchasing  agent 


TESTS  OF  REASONING  243 

referred  to  belting,  oil,  copper,  and  metals.  What  fallacies  were 
involved?    How  would  you  have  avoided  them? 

4.  The  division  must  be  complete,  so  that  the  various  groups  when 
combined  will  equal  the  whole.  A  merchant  estimated  his  rent,  sala- 
ries, spoiled  merchandise,  and  bad  accounts  as  totaling  16  per  cent 
and,  since  a  profit  of  20  per  cent  was  desired,  marked  his  goods  at  an 
advance  of  36  per  cent.     In  what  respect  was  this  figure  fallacious? 

Let  us  now  apply  our  tests  concerning  evidence  to  certain  examples 
which  have  been  drawn  from  the  current  newspapers  and  magazines. 
These  examples  have  been  stripped  of  all  non-essential  matter  in 
order  that  the  fallacies — that  is,  the  errors  in  reasoning — may  be 
more  readily  exposed.  Since  as  a  usual  thing  fallacies  are  imbedded 
in  the  midst  of  long  statements  and  much  perfectly  good  reasoning, 
you  will  find  it  helpful  likewise  to  reduce  questionable  arguments  to 
their  barest  outlines.  What,  boiled  down  to  its  essence,  does  this 
speaker  or  this  article  claim? 

Lack  of  ideas  is  fatal  to  business  success. 

This  efficiency  expert  has  many  ideas. 

Therefore  you  should  not  oppose  the  policies  he  advocates. 

Whatever  harms  people  should  be  avoided. 

A  tariff  on  steel  girders  harms  building  contractors. 

Therefore  the  protective  tariff  should  be  avoided. 

Bankruptcy  is  proof  that  wrong  procedure  was  followed. 

Jones  is  a  bankrupt. 

Therefore  to  succeed  do  just  the  opposite  to  what  Jones  advises. 

Lawsuits  should  be  avoided. 

Collecting  this  bill  from  Smith  involves  a  lawsuit. 

Therefore  this  bill  should  not  be  collected. 

A  federal  Bureau  of  Business  Practice  we  declare  would  be  un- 
constitutional. 
Things  which  are  unconstitutional  cannot  become  law. 
Therefore  you  should  oppose  a  bill  authorizing  such  bureau. 

War  is  a  dreadful  thing. 

Johnson  discharged  his  employees  who  joined  the  militia. 

Therefore  Johnson  is  a  true  humanitarian. 

The  best  accountant  I  ever  employed  had  red  hair. 
This  accountant  has  red  hair. 
Therefore  I  shall  engage  him. 


244 


THE  THINKER  IN  BUSINESS 


Our  advertising  manager  expected  sales  to  exceed  $150,000  per  week. 
They  have  not  passed 'beyond  $125,000. 
Therefore  he  should  be  discharged. 

Mill's  Five  Canons 

The  famous  v^^riter  on  political  economy,  John  Stuart  Mill,  in 
his  "System  of  Logic,"  has  formulated  five  "canons"  or  rules  for 
the  discovery  of  "causal  relations."  The  business  man  who  masters 
these  five  canons,  utilizing  the  illustrations  given  herewith,  will  find 
that  he  has  definitely  gained  in  his  power  of  getting  at  the  essentials. 

First  Canon,  the  Method  of  Agreement.  "If  two  or  more  instances 
of  the  phenomenon  under  investigation  have  only  one  circumstance 
in  common,  the  circumstance  in  which  alone  the  instances  agree,  is 
the  cause  (or  effect),  of  the  given  phenomenon." 

An  example  of  this  method  often  cited  by  logicians  is  the  experi- 
ment carried  on  by  Sir  David  Brewster  in  his  attempt  to  find  the 
cause  for  the  colors  seen  upon  mother-of-pearl.  These  were  quite 
naturally  supposed  to  be  due  to  the  chemical  or  physical  nature  of 
the  substance  itself,  but  Sir  David,  happening  to  take  an  impression 
of  the  mother-of-pearl  in  wax,  found  that  although  the  substances 
were  entirely  different  the  colors  were  exactly  the  same.  He  next 
took  impressions  in  balsam,  gum-arabic,  resin,  etc.,  and  afterwards 
marked  a  metal  surface  with  very  fine,  close  grooves,  in  every  case 
producing  the  same  iridescent  colors  found  with  mother-of-pearl. 
The  form  of  the  surface,  therefore,  which  had  been  the  only  factor 
remaining  the  same  throughout,  and  not  the  chemical  or  physical 
composition,  which  had  varied  in  each  case,  was  by  the  method  of 
agreement  very  properly  concluded  to  be  the  cause  sought. 

Second  Canon,  the  Method  of  Difference.  "If  an  instance  in  which 
the  phenomenon  under  investigation  occurs  and  an  instance  in  which 
it  does  not  occur,  have  every  circumstance  in  common  save  one,  that 
one  occurring  only  in  the  former;  the  circumstance  in  which  alone 
the  two  instances  differ  is  the  effect,  or  the  cause,  or  an  indispensable 
part  of  the  cause  of  the  phenomenon." 

This  is  the  method  of  experiment  and  its  utility,  as  Jevons  points 
out,  depends  mainly  upon  the  precaution  of  varying  one  circum- 
stance only  at  a  time,  all  other  circumstances  being  maintained  just 
as  they  were. 

The  instance  of  the  star  salesman  who  protested  against  being 
charged  with  any  advertising  expense  whatever,  claiming  that  the 
sales  were  not  due  to  advertising  influence  but  to  his  own  ability, 
illustrates  very  nicely  the  use  of  this  canon. 


TESTS  OF  REASONING 


245 


"Very  well,"  returned  the  sales  manager,  "you  are  to  have  Ohio 
as  your  territory  then,  on  your  old  commission.  We  have  not  as  yet 
advertised  there  and  shall  not,  now  that  it  is  to  be  your  territory." 

The  salesman,  well  pleased  with  himself,  sallied  forth  to  conquer 
the  Ohio  territory.  But  business  proved  hard  to  get,  with  commis- 
sions as  a  consequence  small,  and,  although  for  six  weeks  he  marched 
and  countermarched  across  various  sections  of  that  territory,  in  the 
end  he  returned  thoroughly  beaten  to  headquarters.  Advertising,  he 
was  convinced,  did  help  him  on  the  firing  line. 

The  full  validity  of  this  proof  concerning  the  influence  of  adver- 
tising obviously  depends  upon  its  being  the  only  circumstance  which 
varied.  This  searching  question  is  to  be  borne  in  mind,  therefore, 
in  securing  accurate  results  through  the  method  of  difference:  Do 
other  conditions  remain  unchanged? 

Third  Canon,  the  Joint  Method  of  Agreement  and  Difference.  "If 
two  or  more  instances  in  which  the  phenomenon  occurs  have  only 
one  circumstance  in  common,  while  two  or  more  instances  in  which 
it  does  not  occur  have  nothing  in  common  save  the  absence  of  that 
circumstance;  the  circumstance  in  which  alone  the  two  sets  of  in- 
stances differ,  is  the  effect,  or  the  cause,  or  an  indispensable  part  of 
the  cause  of  the  phenomenon." 

What  we  have  here  is  a  double  application  of  the  method  of  agree- 
ment, first  to  a  number  of  instances  where  an  effect  is  produced 
and  secondly  to  a  number  of  quite  different  instances  in  which  the 
effect  is  not  produced. 

A  manufacturer,  let  us  say,  has  experienced  considTable  trouble 
from  complaints  concerning  defective  rear  wheels  in  wagons  which 
he  placed  on  the  market.  The  foreman  declares  the  difficulty  is  due 
to  overloading  in  the  wheat  regions;  the  works  manager  thinks  pos- 
sibly the  relatively  inexperienced  mechanics  engaged  in  one  depart- 
ment (Department  B)  following  a  strike  may  have  turned  out  some 
poor  work  which  escaped  detection ;  while  the  sales  manager  gives  it 
as  his  opinion  that  the  dry  climate  in  certain  sections  is  responsible. 
Complaints  are  tabulated  from  several  sections  as  follows: 

Complaint  A:     Broken    wheel    made    by    Dept.    B — farm    use — dry 

region. 
Complaint  B  :     Loose  hub — made  by  Dept.  B — lumber  camp — damp 

region. 
Complaint  C:     Defective  bands — made  by  Dept.  B — coal  delivery — 

average  climate. 
Complaint  D :     Cracked  spokes — made  by  Dept.  B — dairy  use — damp 

climate;  etc.,  etc. 


246  THE  THINKER  IN  BUSINESS 

The  returns  concerning  these  various  wagons  reveal  the  fact  that 
only  one  circumstance  is  invariably  present,  "made  in  Dept.  B." 
That  this  is  the  cause  sought  is  probable,  but  in  order  to  render  the 
conclusion  still  more  definite,  it  is  decided  to  investigate  negative 
instances,  or  in  other  words,  cases  in  which  the  wagons  had  proved 
entirely  satisfactory.  This  reveals  that  the  wagons  made  by  depart- 
ments other  than  B  are  being  used  under  widely  varying  conditions 
of  climate  and  load,  and  that  uniformly  they  are  giving  satisfaction. 
This  information  shows  that  where  no  complaints  had  been  received 
one  and  only  one  condition  was  invariably  absent;  viz.,  the  work  of 
Department  B.    This  confirms  the  previous  investigation. 

Fourth  Canon,  the  Method  of  Concomitant  Variations.  "What- 
ever phenomenon  varies  in  any  manner  whenever  another  phenome- 
non varies  in  some  particular  manner,  is  either  a  cause  or  an  effect 
of  that  phenomenon  or  is  connected  with  it  through  some  fact  of 
causation." 

The  directors  of  a  certain  large  baking  concern  in  their  delibera- 
tions at  a  particular  meeting  not  long  since  illustrated  how  this  canon 
is  applied.  The  instance,  it  will  be  recognized,  has  been  stated  in 
much  simpler  terms  than  actually  existed  for  obviously  no  bakery's 
success  is  dependent  upon  three  factors  alone.  But  otherwise  the 
conditions  remain  unchanged.  This  was  the  evidence  placed  before 
them: 

Kansas  City  plant — run-down  business.     Coming  of  Supt.   Smith= 

improving  business. 
Pittsburgh  plant — high  costs.     Coming  of   Supt.    Smith=improving 

business. 
Boston  plant — factional  quarrels.     Coming  of  Supt.  Smith=improv- 

ing  business. 

According  to  detailed  records  submitted  by  the  firm's  accountants 
it  was  clear  that  the  increasing  week  by  week  tenure  of  this  par- 
ticular executive  and  a  plant's  gradual  reaching  of  its  standard  in 
capacity  and  costs  were  in  close  causal  connection.  The  board  pro- 
ceeded to  elect  Superintendent  Smith  general  manager,  and  the  same 
ability  which  enabled  him  to  put  plant  after  plant  into  condition 
is  now  operating  successfully  in  a  wider  field. 

Inasmuch  as  business  problems  very  frequently  are  characterized 
by  change,  it  is  found  convenient  to  utilize  this  method  of  detecting 
causes  from  the  study  of  concomitant  variations. 

Fifth  Canon,  the  Method  of  Residues.  "Subduct  from  any  phe- 
nomenon such  part  as  is  known  by  previous  iuductions  to  be  the 


TESTS  OF  REASONING 


247 


effect  of  certain  antecedents  and  the  residue  of  the  phenomenon  is 
the  effect  of  the  remaining  antecedents." 

This  method  was  employed  by  Sir  Isaac  Newton  in  an  ingenious 
experiment  in  which  he  sought  to  determine  the  elasticity  of  sub- 
stances by  allowing  balls  made  of  these  various  substances  to  swing 
against  each  other,  and  then  observing  how  far  they  rebounded  in 
comparison  with  their  original  fall.  This  loss  of  motion,  however. 
Sir  Isaac  was  well  aware,  is  due  only  in  part  to  imperfect  elasticity, 
since  the  resistance  of  the  air  also  enters  i^  to  effect  the  result.  He 
determined  the  strength  of  this  resistance  by  allowing  the  balls  to 
swing  without  striking  each  other  and  observing  how  much  each 
variation  was  less  than  the  last.  By  being  enabled  in  this  way  to 
compute  the  quantity  which  must  be  deducted  for  the  resistance  of 
the  air,  he  had  at  the  same  time  determined  the  elasticity  of  the 
substances  under  investigation,  since  these  were  expressed  by  the 
residue. 

It  may  very  likely  be  that  after  the  effects  of  all  the  known 
causes  have  been  subtracted  from  a  given  phenomenon  a  residue  still 
continues  to  exist.  One  is  tempted  to  pass  over  such  residue  with- 
out further  investigation,  since  to  the  average  mind  at  least  residual 
phenomenon  are  usually  obscure  and  seemingly  unimportant.  Never- 
theless, this  final  canon  emphasizes  the  importance  of  a  complete 
and  precise  solution  of  the  problem  at  hand. 


PART  V 
AIDS  TO  EFFICIENT  CONTROL  OF  BUSINESS 


To  judge  your  business  fairly,  you  must  review  the  past, 
know  the  present,  and  judge  the  future  from  what  you  liave 
done  and  what  you  are  doing,  coupled  zvith  a  careful  survey 
of  the  field  in  which  you  operate. — Henry  Clews. 

Properly  classified  records  act  as  a  measure  of  efficiency; 
they  point  definitely  to  either  a  profit  or  a  loss. 

— Leo  Greendlinger. 


CHAPTER  XIV 

CONTROL  THROUGH  STATISTICS 

To  the  keen,  analytical  mind  in  business  there  is  scarcely 
such  a  thing  as  chance,  for  this  reading  of  the  future  by 
analysis  removes  the  elements  of  uncertainty  in  any  enter- 
prise.— John  H.  Hanan,  President  of  Hanan  and  Son. 

The  Problem  of  Control 

The  trained  mind,  reasoning  along  the  lines  suggested  in 
the  preceding  two  chapters,  depends  constantly  for  accurate 
results  upon  statistical  information.  Facts,  verifiable  evi- 
dence of  every  operation  from  the  purchase  of  raw  materials 
to  the  collection  of  bills  due,  have  in  every  progressive  business 
establishment  fairly  effectively  ousted  Dame  Chance ;  the  man- 
ager applying  the  best  practice  of  today  has  become  convinced 
he  cannot  continually  guess  nor  wait  for  year-end  inventories, 
but  must  exercise  day-to-day  control. 

The  necessity  for  this  close  control  becomes  apparent  upon 
an  examination  of  cost  data,  compiled  under  the  competitive 
conditions  which  prevail  today  in  industry.  A  commodity 
which  the  manufacturer,  let  us  say,  puts  upon  the  market  for 
$i6o  has  entailed  the  various  items  of  expense  shown  in  Fig- 
ure 23. 

Here  expenditures  of  $150  yield  a  profit  of  $10 — 6  7/10 
per  cent  on  the  cost  price  or  6  3/10  per  cent  on  the  selling  price. 
The  narrow  margin  speaks  in  no  uncertain  terms  of  competi- 
tion, and  it  emphasizes  at  the  same  time  the  important  in- 
fluence upon  the  results  of  what  managers  of  the  old  time  school 
refer  to  contemptuously  as  httle  things ;  a  five  dollar  reduction 
in  any  of  these  cost  items  increases  net  profits  50  per  cent;  a 
ten  dollar  accumulation  of  small  wastes  wipes  out  profits  en- 

251 


252 


EFFICIENT  CONTROL  OF  BUSINESS 


tirely.     These  items,  in  short,  concern  the  business  too  vitally 
to  be  left  subject  to  chance. 

"In  the  game  of  business  as  in  the  game  on  the  diamond," 
declares  John  T.  Wolff,  of  the  L.  Wolff  Manufacturing  Com- 
pany, with  much  truth,  "it  is  the  man  who  keeps  score  on  re- 


Profit 

*I0 

General 

Expense 

*Z5 

Indirect 
Expense 

*50 

Selling  Price 

Total  Co5T 

*I60 

Tactory  Cost 

*y50 

*l^5 

Direct  Labor 

*50 

Prime 
♦  7 

Cost 
5 

Material 

*£5 

Figure  23.    The  Elements  of  Costs 

(Adapted   from   Nicholson's   "Cost  Accounting — Theory    and   Practice"   by   permission 

of  the  publishers.) 


suits  who  follows  most  closely  the  progress  and  the  profits  of 
his  work." 

The  problem  of  statistical  control  is  (a)  how  to  secure  the 
needed  data  most  easily  and  quickly,  and  (b)  how  to  utilize 
it  with  effectiveness  in  the  management  of  a  business. 


CONTROL  THROUGH  STATISTICS 


253 


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254  EFFICIENT  CONTROL-  OF  BUSINESS 

The  Securing  of  Statistical  Data 

The  usual  basis  of  control  within  a  business  consists  of 
the  original  entries  made  by  clerks  and  workmen  upon  the 
various  forms  with  which  they  have  been  provided.  In  con- 
sequence, information  concerning  all  phases  of  its  activity 
continually  collects,  as  indicated  by  the  diagram  of  Figure  24. 

This  diagram  sets  forth  with  fair  accuracy  a  fact  increas- 
ingly characteristic  of  the  large-scale  enterprise — that  its  wage 
earners,  clerks,  salesmen,  correspondents,  executives,  etc.,  do 
much  recording  of  their  respective  accomplishments.  While 
accountants  often  apply  the  term  "unproductive"  to  those  en- 
gaged strictly  in  recording,  and  executives  oftentimes  assume 
this  term  to  be  literally  true,  in  the  case  of  all  record  making 
such  is  not  really  the  case ;  an  effective  control  is  produced. 

"A  wise  direction  is  of  more  avail  than  overwhelming 
numbers;  sound  strategy  than  the  most  perfect  organization," 
rightly  declared  Henry  L.  Gantt;  "a  wise  policy  is  of  more 
avail  than  a  large  plant,  good  management  than  perfect  equip- 
ment." 

Adequate  Control  at  Reduced  Cost 

The  value,  indeed  the  necessity  of  control  and  the  part 
which  records  play  in  this  control  convince  most  business  men 
that  accounting  cannot  be  safely  ignored.  Nevertheless  there 
are  organizations  so  completely  bound  in  "red  tape"  that  the 
energies  of  this  staff,  turned  card- wise,  exhibit  a  sorry  show- 
ing result-wise.  Control  can  be  purchased  at  too  high  a  price. 
The  problem  here  faced  is  much  the  same  as  encountered  in 
other  phases  of  the  business — how  with  a  minimum  outlay  for 
recording  to  secure  maximum  results  in  control. 

The  following,  while  they  do  not  constitute  an  inclusive 
list,  indicate  methods  that  work  out  well  in  practice. 

1.  Standardized  forms. 

2.  Essential  data. 


CONTROL  THROUGH  STATISTICS  255 

3.  Samples. 

4.  Up-to-date  information. 

5.  Summarized  reports. 

6.  Statistical  analysis. 

I.  Standardized  Forms 

The  proper  allotment  of  space  in  the  planning  of  a  unit 
record  form  reduces  considerably  the  labor  in  making  the  orig- 
inal entries.  (See  Figure  25.)  The  setting  aside  of  specific 
space  for  specific  facts  secures  increased  ease  in  the  recording 
itself,  with  decreased  liability  of  omitting  pertinent  data. 


Data  which  controls  the 
filing 


Data  for  sub-classification. 

Summaries   and    digests    for 

quick  reference. 


Body  of  the  Report:  This  area  to  be  more  or  less  definitely 
broken  up  into  appropriate  rectangular  areas  which,  as 
blanks,  will  remind  the  reporter  of  each  element  required 
in  his  report,  and  which,  as  records,  will  ensure  speed  in 
the  use  of  the  form,  by  providing  a  uniform  location  for 
each  class  of  information. 

Reserve  Space:  For  suggestions,  exceptional  facts,  matters 
difficult  to  classify  above,  or  any  pertinent  additional  data 
not  planned  for  in  the  original  layout. 


Figure   25.     General   Layout  of   a   Unit   Record 

(Reproduced  by  permission  from  Jones'   "Administration  of  Indiutrial  Enterprises.") 

In  addition  to  a  standardized  layout,  it  also  increases  the 
ease  with  which  forms  are  filled  out  if  the  spaces  between 
horizontal  rulings  agree  in  width  with  the  regular  typewriter 
spacings,  and  if  these  rulings  are  so  arranged  underneath  each 
other  as  to  require  the  least  movement  of  the  typewriter  car- 
riage right  or  left  with  each  new  line  in  order  to  follow  the 
form's  indentation.   Further  standardization  can  well  simplify 


256  EFFICIENT  CONTROL  OF  BUSINESS 

the  amount  of  writing  required  in  recording  the  information, 
the  ideal  form  in  this  respect  being  one  in  which  figures  or 
check  words  tell  most  of  the  story.  Finally  the  use  of  similar 
records  by  different  departments  can  be  so  arranged  that  a 
single  record  made  with  several  carbon  copies  will  suffice  in 
place  of  the  numerous  isolated  and  vexatious  reports  so  fre- 
quently found. 

2.  Essential  Data 

In  the  securing  and  use  of  data,  the  nature  and  operating 
conditions  of  the  business  are  of  primary  importance.  Brick 
making  plants  cannot  without  extensive  modification  take  over 
a  department  store's  accounting  system,  nor  can  metal  working 
establishments  use  with  satisfaction  a  system  prescribed  for 
steam  railways.  Transactions  in  the  case  of  any  given  busi- 
ness should  be  recorded  according  to  a  system  devised  for  it, 
since  only  in  this  way  can  the  collection  of  much  useless  infor- 
mation be  eliminated  while  at  the  same  time  all  essential  sta- 
tistics are  secured. 

In  case  of  doubt  it  is  well  to  record  rather  more  than  less 
information,  the  extra  cost  being  regarded  in  the  nature  of 
insurance.  At  the  same  time  a  more  careful  mapping  out  in 
advance  of  those  essential  factors  concerning  which  informa- 
tion is  wanted  would  save  much  useless  recording  and  in  the 
experience  of  most  organizations  would  pay  for  its  trouble 
manifold. 

3.  Samples 

Certain  activities  of  a  business,  such  as  purchasing,  selling 
or  check  drawing,  must  in  every  single  instance  be  recorded. 
In  other  cases,  however,  complete  information  concerning 
every  item  is  not  always  required  for  purposes  of  control. 
The  business  man  usually  decides  from  the  showing  of  a  lim- 
ited number  of  samples  what  can  be  expected  of  an  entire  con- 
signment of  tin  containers  or  lead  pencils  or  bolts  of  cloth. 


CONTROL  THROUGH  STATISTICS 


257 


The  value  of  a  sample  depends  upon  the  faithfulness  with 
which  it  represents  the  group.  This  value,  the  prime  consid- 
eration in  the  use  of  samples,  can  be  somewhat  more  readily 
attained  in  practice  by  the  use  of  the  following  simple  rules. 

a.  The  group  itself  should  be  carefully  and  exactly  defined. 

b.  In  securing  samples,  every  member  of  the  group  under 
consideration  should  have  practically  the  same  chance  of  being 
included. 

c.  Should  the  arbitrary  action  of  chance  appear  unsatis- 
factory, then  fair  samples  may  be  selected  by  other  means. 

d.  The  number  of  samples  should  be  increased  until  suc- 
cessive tests  show  sufficiently  similar  results. 

4.  Up-to-date  Information 

The  compilation  of  the  report  requires  time,  which  if  pro- 
longed too  much  renders  its  data  valuable  chiefly  for  purposes 
of  history.  The  executive,  however,  since  he  wants  not  merely 
a  record  of  what  has  been  done  but  data  upon  which  to  pre- 
dict future  performances,  needs  these  reports  promptly  if  he 
is  to  use  them  with  effectiveness.  Such  up-to-dateness  can 
be  secured  by  a  time  schedule.  Special  reports,  it  is  true,  are 
not  easily  brought  into  line  but  the  time  schedule  can  be  ad- 
justed satisfactorily  for  all  regular  reports,  the  amount  of  lee- 
way permitted  being  at  the  most  only  equivalent  to  the  period 
covered  by  the  report.  Regular  monthly  reports  ought  never 
to  be  over  one  month  late,  weekly  reports  over  a  week  late, 
daily  reports  over  a  day  late,  because  in  moving  down  the 
streets  of  business  the  accountant,  always  several  steps  behind 
the  executive,  must  walk  just  as  fast  as  if  only  one  step  behind. 

5.  Summarized  Reports 

The  executive,  whether  he  be  at  the  head  of  a  department 
or  in  charge  of  an  entire  establishment,  who  tries  to  digest  all 
the  statistics  which  pertain  to  his  business  will  be  overwhelmed. 


2S8  EFFICIENT  CONTROL  OF  BUSINESS 

He  should  have  summarized  reports,  these  in  each  case  to  be 
prepared  from  the  viewpoint  of  his  particular  position. 

An  executive  in  a  subordinate  position  needs  to  have  a 
summary  of  the  minor  details  for  which  he  is  responsible. 
To  the  executive  higher  up  the  same  summary  might  be  of 
little  value  because  not  broad  enough  in  its  scope.  The 
higher  official  wants  the  first  summaries  of  details  to  be  again 
summarized  and  assembled  in  a  form  that  covers  the  work 
for  which  he  is  responsible.  The  president  of  the  big  manu- 
facturing concern,  who  is  concerned  with  only  broad  results, 
wants  comprehensive  reports  regarding  the  total  of  produc- 
tion, or  expense,  or  sales  and  collections.  If  the  figures  at 
the  end  of  the  line  show  unsatisfactory  results  then  the  cause 
can  be  traced  backwards  and  ascertained,  providing  statistics 
are  complete  all  along  the  line. 

6.  Statistical  Analysis 

The  statistics  collected  from  the  various  departments  of  a 
business  and  used  for  purposes  of  control  can  with  profit  be 
analyzed  in  various  ways.  While  a  discussion  of  this  very 
broad  subject  is  not  possible  here,  the  more  common  of  these 
analyses  concern  questions  such  as : 

Have  simple  or  weighted  averages  been  employed  ?  Which 
should  have  been  employed? 

How  were  the  items  originally  distributed?  What  is  the 
average  deviation?     The  standard  deviation? 

What  information  can  be  gained  by  comparing  average, 
median  and  mode  of  certain  items? 

What  classification  of  accounts  do  my  books  show?  Are 
the  items  of  this  classification  accurate  and  adequate? 

Are  the  balance  sheet  valuations  sufficiently  accurate? 
Have  assets  been  distinguished  from  expense  items?  How 
was  the  worth  of  good-will  determined  ?  Has  the  proper  rate 
for  depreciation  been  determined  and  booked? 


CONTROL  THROUGH  STATISTICS 


259 


The  man  in  an  executive  position,  whatever  the  extent 
of  his  authority  and  responsibihty,  must  develop  the  habit  of 
using  with  discrimination  such  statistical  reports  as  he  can 
obtain. 

"It  is  remarkable  what  an  enormous  amount  can  be  saved 
in  a  business,"  declares  H.  W.  Hall,  manager  of  Wellington 
and  Wood,  "when  every  detail,  large  or  small,  is  carefully 
watched  through  its  medium  of  an  efficient  system," 

Outside  Conditions:     Business  Barometers 

The  statistical  data  drawn  from  inside  an  establishment 
are  of  decided  usefulness,  yet  in  themselves  alone  they  cannot 
supply  the  close  control  desired.  They  must  needs  be  supple- 
mented. The  executive  after  a  time  comes  to  realize  that  this 
enterprise  of  his  is  moved  by  certain  far-reaching  outside  in- 
fluences. Great  periods  of  alternating  prosperity  and  depres- 
sion rock  his  project  as  a  cockle-shell  upon  the  deep  so  that, 
direct  its  inside  activities  as  he  will,  he  feels  that  his  business 
future  is  in  the  grip  of  what  to  him  oftentimes  are  but  vast, 
unseen  forces. 

"A  man  may  be  thoroughly  upright,"  declares  President 
Upham  of  the  Consumers  Company,  "of  the  highest  personal 
character,  and  have  had  years  of  experience  in  the  very  best 
lines  of  the  undertaking  which  he  represents ;  yet  if  he  has  not 
the  ability  to  discern  those  hidden  influences  which  will  operate 
for  the  success  or  failure  of  his  project,  he  is  not  a  safe  man 
as  an  associate." 

The  Cycles  of  Business 

The  value  of  this  ability  to  discern  the  underlying  forces 
of  business  becomes  more  evident  upon  a  brief  examination  of 
cycles  which  have  occurred  in  the  past.  These,  even  though 
indicated  in  a  general  way,  convey  an  important  truth. 


26o 


EFFICIENT  CONTROL  OF  BUSINESS 


The  Annals  of  Trade  Summarized 

Years 

1814  A  crisis.     Resources  had  been  wasted  in  the  war 

and  erroneous  policies  in  regard  to  foreign  trade, 
taxation,  and  banking  development  augmented  the 
distress. 

1815-17  A  period  of  revival.  The  restrictions  caused  by 
the  embargo  and  the  war  were  succeeded  by  an 
increased  trade. 

1818-19  Crisis.  Radical  changes  encountered  in  fiscal 
and  economic  policies. 

1819-37  An  era  of  internal  improvements,  whose  advance 
at  times  was  halted,  but  only  temporarily. 

1837-43  Crisis,  followed  by  depression.  The  launching 
of  numerous  highly  speculative  ventures  together 
with  vicious  banking  and  currency  measures 
brought  about  a  relapse. 

1843-57        A  period  of  remarkable  growth  and  prosperity. 

^^57~59  Crisis,  followed  by  depression.  Financial  dis- 
turbance was  a  comparatively  prominent   feature. 

1860-73  War  demands  stimulated  industry,  and  close  of 
war  saw  expansion  continuing  with  but  slight  re- 
action. 

1873-78  Crisis  of  decided  severity,  followed  by  unprece- 
dented depression. 

1879-90  Trade  revival,  interrupted  temporarily  by  panic 
of  1884,  made  general  progress. 

1893-96  Crisis.  Panic  acute  from  May  to  October,  1893, 
and  depression  continued  with  but  slight  revival  to 
end  of  period. 

1897-02  High  tide  of  prosperity  continued  in  general 
throughout  country. 

1903-04        Financial  panic  and  mild  industrial  depression. 

1905-06        Prosperity  in  business  again  reached  high  tide. 

1907-08  Crisis.  Severe  financial  panic  followed  by  deep 
depression  in  trade. 

1909-12        Moderate  revival  in  business. 

1913-14  Crisis.  Depression  developed  into  crisis  upon 
outbreak  of  war  and  business  continued  at  low  ebb 
into  191 5. 

1915-17        A  period  of  unprecedented  prosperity. 

1918  Unsettled  conditions  and  depression  in  some  lines 

due  to  drastic  war  regulations. 


CONTROL  THROUGH  STATISTICS  261 

"In  the  real  world  of  business,"  declares  Professor  Wesley 
C.  Mitchell,  "affairs  are  always  undergoing  a  cumulative 
change,  always  passing  through  some  phase  of  a  business  cycle 
into  some  other  phase.  Prosperity  is  relapsing  into  depres- 
sion, or  becoming  more  intense,  or  breeding  a  crisis;  a  crisis 
is  degenerating  into  a  panic,  or  subsiding  into  depression ;  de- 
pression is  becoming  deeper,  or  merging  into  a  revival  of  pros- 
perity. In  fact,  if  not  in  theory  a  state  of  change  in  business 
conditions  is  the  only  'normal'  state." 

The  Study  of  Fundamentals 

Is  it  possible,  in  view  of  the  vast  changes  summarized  in 
the  above  annals  of  trade  and  in  view  of  similar  changes  des- 
tined to  come,  for  an  executive  who  thinks  only  in  terms  of 
"inside  the  factory"  to  succeed  in  a  large  way?  It  cannot  be. 
The  narrow  man  will  in  due  time  see  his  business  craft  wrecked 
upon  some  reef  unknown  to  him,  but  known  to  and  carefully 
charted  by  men  more  broadly  informed. 

The  man  whose  desire  for  business  information  is  satis- 
fied by  a  skimming  of  the  daily  paper  and  listening  to  what 
chance  acquaintances  may  say  in  reply  to  his  usual  question  of 
"How's  business?"  will  not,  needless  to  say,  gain  a  knowledge 
of  the  underlying  foundations  of  business  management.  Their 
utilization  calls  for  something  which  the  average  business  man 
does  not  always  fancy,  a  patient  and  critical  investigation. 
Fundamental  data  must  be  studied. 

A  Preliminary  Analysis 

In  approaching  the  consideration  of  fundamental  data  it 
is  useful  to  view  the  problems  thus : 

I.  There  is  what  may  be  called  a  regular  cycle  of  busi- 
ness change  passing  through  four  well-defined  periods.  The 
periods  will  vary,  of  course,  in  relative  length  according  to 
the  general  situation,  but  the  order  roughly  is : 


262  EFFICIENT  CONTROL  OF  BUSINESS 

A  period  of  prosperity 
A  period  of  decline 
A  period  of  depression 
A  period  of  improvement 

The  idea  that  prosperity  or  depression  can  be  permanent, 
while  theoretically  possible  of  conception,  does  not  work  out 
in  practice.  Hence  the  vital  importance  of  viewing  business 
conditions  in  the  way  just  stated  as  being  characterized  by 
four  periods  and  always  in  change.  This,  the  dynamic  and 
the  true  point  of  view,  indicates  how  business  men  are  con- 
cerned both  with  conditions  today  and  conditions  to  be  ex- 
pected. 

2.  Each  phase  of  the  business  cycle  records  its  progress 
in  fundamental  statistics,  which  furnish  the  student  not  only 
a  clear  idea  of  present  conditions  but  serve  tolerably  well  as 
barometers  of  storms  or  fair  weather  ahead. 

These  fundamental  statistics  have  to  do  with  a  variety  of 
items,  a  list  far  too  long  to  be  discussed  here.  We  may,  how- 
ever, notice  a  few  of  them,  and  the  way  in  which  they  are 
used  to  throw  light  upon  business  conditions.  First  of  all  let 
us  consider  the  data  relating  to  the  volume  of  business. 

The  Volume  of  Business — Bank  Clearings 

In  the  transaction  of  business  it  is  estimated  that  checks 
are  employed  to  a  degree  exceeding  ninety-five  per  cent. 
Since  practically  all  these  checks,  in  turn,  pass  through  clear- 
ing houses,  where  their  totals  are  recorded,  the  volume  of 
bank  clearings  accurately  mirrors  the  general  state  of  trade. 
When  times  are  prosperous  and  business  brisk,  the  amounts 
passing  through  the  clearing  houses  are  relatively  heavy ;  when 
opposite  conditions  prevail,  fewer  checks  are  drawn.  In  the 
record  of  bank  clearings  accordingly  the  business  man  has  a 
very  good  barometer  of  present  business  conditions. 


CONTROL  THROUGH  STATISTICS  263 

Bank  clearings  are  reported  by  several  financial  journals, 
of  which  The  Commercial  and  Financial  Chronicle  and  The 
Annalist,  both  published  in  New  York,  are  excellent.  These 
journals  also  present  comparative  figures  which  make  possible 
a  study  of  the  trend  for  several  years  past. 

Further  Data  on  Volume  of  Business 

In  addition  to  bank  clearings,  the  following  sources  of  in- 
formation also  are  serviceable  in  estimating  fluctuations  in  the 
volume  of  business. 

Railroad  Gross  Earnings.  The  output  of  factories,  the 
supplies  of  retailers,  and  other  products  of  industry  are  trans- 
ported, to  a  very  large  degree,  by  the  railroads.  Hence  the 
amount  of  gross  earnings  indicates  the  volume  of  business, 
and  in  addition  shows  the  prospects  which  concerns  depend- 
ent upon  the  roads  for  orders,  such  as  the  equipment  com- 
panies, have  for  securing  contracts. 

Number  of  Idle  Cars.  The  use  of  this  item  as  a  source 
of  information  does  not  differ  essentially  from  the  above; 
when  cars  are  idle  in  large  numbers  rail  traffic  is  languishing 
and  vice  versa. 

Output  of  Basic  Commodities.  The  production  of  coal, 
copper,  pig-iron,  steel,  cotton,  corn,  and  wheat  constitutes  items 
of  great  importance  since  these  are  basic  commodities  whose 
fluctuations  will  be  reflected  a  thousand  times  in  other  busi- 
nesses dependent  upon  them. 

Shipments  of  Grain,  Livestock,  Cotton,  etc.  The  market 
condition  of  such  commodities  can  be  gathered  from  the 
reports  published  of  the  transactions  which  take  place  daily. 

Foreign  Trade.  This  concerns  three  items,  the  volume  of 
exports,  the  volume  of  imports,  and  the  trade  balance. 

Other  Fundamental  Statistics 

Next  in  importance  to  the  data  regarding  the  volume  of 
business  are  those  which  relate  to  commodity  prices,  as  shown 


264  EFFICIENT  CONTROL  OF  BUSINESS 

both  by  market  quotations  for  the  commodities  themselves 
and  by  such  *'index  numbers"  as  are  pubUshed  by  Dun's  and 
by  Bradstreet's. 

A  third  group  of  data  is  that  relating  to  currency  statistics. 
Since  money  plays  an  important  role  in  business  and  is  sensi- 
tive with  respect  to  changes,  information  concerning  the  con- 
ditions of  the  currency  serves  very  well  the  functions  of  a 
barometer.  Items  dealing  with  currency  statistics  are :  money 
in  circulation,  gold  exports  and  imports,  bank  loans,  bank 
deposits,  surplus  reserve  of  banks,  domestic  and  foreign 
exchange  rates,  and  money  rates. 

A  fourth  group  of  data  concerns  profits  and  speculation. 
The  profits  currently  being  attained  are  shown  by  two  excel- 
lent sources;  the  earnings  of  the  railroads  and  the  earnings 
of  the  United  States  Steel  Corporation.  The  reports  of  cor- 
porations engaged  in  mining,  manufacturing,  wholesaling, 
retailing,  and  banking  supplement  these  two  sources,  and  the 
statistics  issued  weekly  by  Dun's  and  Bradstreet's  which  show 
the  extent  of  bankruptcy  present  the  situation  from  its  opposite 
side. 

The  prospects  of  profits  are  indicated  by  certain  items  into 
which  the  element  of  speculation  enters  more  directly;  the 
volume  of  transactions  on  the  New  York  Stock  Exchange, 
the  mileage  of  railroads  under  construction,  the  unfilled  orders 
of  the  United  States  Steel  Corporation,  the  number  of  build- 
ing permits  granted,  the  new  security  issues  offered  the  pub- 
lic, etc. 

The  Choice  of  Barometers 

The  foregoing  list  of  items  already  is  somewhat  long,  yel 
shall  we  claim  it  is  at  all  complete? 

In  recent  years  various  organizations  have  grown  up  de- 
voted to  the  compilation  and  interpretation  of  commercial 
statistics.     The  two  organizations  which  have  done  most  to 


CONTROL  THROUGH  STATISTICS 


265 


render  the  use  of  fundamental  statistics  popular  among  busi- 
ness men,  Babson's  Statistical  Organization  and  The  Brook- 
mire  Economic  Service,  have  selected  respectively  the  two 
following  groups  of  items  as  comprising  in  their  opinion  the 
essentials  common  to  most  businesses : 


Babson's  Classification 

Mercantile  Conditions 

1.  Immigration 

2.  New  building 

3.  Failures 

4.  Bank  clearings 

Monetary  Conditions 

5.  Commodity  prices 

6.  Total  foreign  trade 

7.  Foreign  money  rates 

8.  Domestic  money  rates 

Investment  Conditions 

9.  Yield  of  leading  crops 

10.  Idle  cars 

11.  Political  factors 

12.  Stock  market  conditions 


Brookmire's  Classification 

Business  Conditions 

1.  Bank  clearings 

2.  Railroad  earnings 

3.  Steel  billets 

4.  U.  S.  steel  orders 

5.  Pig-iron     production     and 

prices 

6.  Commodity  prices 

7.  Imports 

8.  New  building 

Banking  Conditions 

9.  Reserves 

10.  Deposits 

11.  Rate  of  commercial  paper 

12.  Percentage    loans    to    de- 

posits 

13.  Percentage      reserves      to 

loans 

Stock  Market  Conditions 

14.  Average    price    thirty-two 

stocks 


The  Sources  of  Statistics 

These  statistics  are  recorded  with  considerable  complete- 
ness in  trade  journals,  and  somewhat  condensed  in  daily 
papers,  commonly  in  their  financial  section.  The  Financial  and 
Commercial:  Chronicle  and  The  Annalist  publish  weekly  very 
satisfactory  compilations  of  most  of  the  subjects  listed  by 
Babson  and  Brookmire,  and  their  data  will  suffice  for  the 
average  needs. 


266  EFFICIENT  CONTROL  OF  BUSINESS 

The  Interpretation  of  Fundamental  Statistics 

The  problem  thus  becomes  one  of  securing  from  these 
numerous  and  at  times  conflicting  statistics  some  connected 
account  concerning  the  business  cycle  prevailing  at  the  time. 
The  solution  of  this  problem  constitutes  no  small  task.  Pro- 
fessor Wesley  C.  Mitchell  says: 

Every  business  cycle,  strictly  speaking,  is  a  unique  series 
of  events  and  has  a  unique  explanation,  because  it  is  the 
outgrowth  of  a  preceding  series  of  events,  likewise  unique. 
Further,  the  intellectual  instruments  of  analysis  are  unequal 
to  the  complex  problem  of  handling  simultaneous  variations 
among  a  large  number  of  interrelated  functions.  .  .  . 

Notwithstanding,  much  would  be  gained  for  the  conduct 
of  individual  affairs  and  the  guidance  of  legislation  could 
we  single  out  from  the  maze  of  sequence  among  business 
phenomena  a  few  which  are  substantially  uniform.  For 
these  sequences  could  be  used  with  a  degree  of  confidence 
depending  upon  the  regularity  with  which  they  recur  as 
guides  in  forecasting  the  immediate  business  future.  They 
could  also  serve  as  centers  for  organizing  our  knowledge 
concerning  the  variable  sequences,  and  as  points  of  depart- 
ure in  search  for  new  uniformities.  Such  regular  sequences 
would  help  us  to  break  up  the  tangled  mass  of  facts  pre- 
sented by  direct  observation  into  coherent  clusters. 

The  solution  of  the  problem  here  presented  has  been 
worked  out  by  the  two  statistical  organizations  mentioned 
above  in  this  way :  Each  has  singled  out  certain  items  regarded 
as  significant,  as  per  the  lists  already  presented ;  and  each  com- 
bines these  items  so  as  to  exhibit  general  tendencies,  Babson 
in  the  form  of  a  composite  plot,  Brookmire  in  the  form  of  a 
business,  a  banking,  a  stock  graph.  (See  Figure  26, 
a  and  b.) 

Significance  of  the  Time  Element 

The  items  combined  in  this  way  picture  excellently  con- 
ditions prevailing  in  business.  But  the  two  charts  both  present 
another  fact  of  interest,  which  can  be  pursued  independently 


CONTROL  THROUGH  STATISTICS 


267 


in  greater  detail  should  one  wish  to  do  so,  viz.,  varying  fluctua- 
tions in  point  of  time. 

While  in  general  we  say  that  the  really  serviceable  barome- 
ters are  those  which  correlate  most  closely  with  our  particular 
business,  is  it  a  matter  of  any  importance  whether  this  month's 
statistics  of  bank  clearings  or  commodity  prices  or  railroad 
earnings,  let  us  say,  correlate  with  the  conditions  of  our  busi- 
ness more  closely  or  less  closely  than  the  similar  statistics  of 
last  year  would  have  done  or  of  next  year  will  do?  In  other 
words,  does  the  time  element  especially  concern  us? 


1904 1 1905 1 1906 ] 1907 1 1908  1 1909  1 1910 

1911 

1912 

1913 

1914 

1915 

1916 

1917 

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Figure  26    (a).     Babson's   "Compositplot" 

Statistics  covering  the  various  topics  shown   in   the   classification   on   page   265  are  pre- 
sented  by   the   Babson's   Statistical   Organization   in   the    manner   shown.      (Reproduced 

by  permission.) 

The  various  items  specified  as  barometers,  such  as  exports, 
railroad  earnings,  immigration,  business  failures,  all  change 
as  a  period  of  prosperity  fades  into  a  period  of  decline  and 
finally  into  depression,  or  vice  versa ;  but  they  do  not  advance 
or  recede  simultaneously. 

Bank  clearings  of  a  particular  period  were  found  corre- 
lated with  commodity  prices  to  the  degree  indicated  by  the 
coefficient  -{-.758;  but  the  commodity  prices  were  found  cor- 
related more  closely  with  the  bank  clearings  of  the  preceding 


268 


EFFICIENT  CONTROL  OF  BUSINESS 


Figure  26  (b).    Brookmire's  Graph 

(Reproduced  by  permission.) 


CONTROL  THROUGH  STATISTICS  269 

year,  the  coefficient  being  +.818.  In  case  we  wish  to  use  one 
of  these  two  sets  of  data  today  as  a  basis  upon  which  to  reason 
what  is  Hkely  to  occur  later  in  regard  to  the  other,  it  is  evi- 
dent that  bank  clearings  and  commodity  prices  are  by  no 
means  of  equal  efficacy  in  forecasting. 

The  items  which  tend  to  fluctuate  first  and  thus  serve  to 
forecast  changes  later  to  take  place  in  other  items  are  stock 
prices,  the  number  of  shares  traded  in,  bank  clearings,  new 
railroad  mileage,  and  the  percentage  of  business  failures. 

Forecasting  Made  Possible  by  Statistical  Knowledge 

Systematic  study  of  statistics,  both  regarding  one's  own 
business  and  the  business  world  in  general,  enables  the  execu- 
tive to  forecast  the  future,  to  utilize  the  experience  of  today 
and  yesterday  as  an  indicator  of  what  is  to  occur  tomorrow. 

The  gift  of  prophecy  which  in  times  past  was  presided 
over  by  a  wonder-working  priesthood,  is  in  our  machine  age 
shorn  of  its  mystical  attributes  and  put  into  matter-of-fact 
service  under  the  control  of  scientific  method.  The  self- 
deceived  man,  the  non-scientist,  the  man  whose  feelings, 
as  Lord  Bacon  warns  us,  imbue  and  corrupt  his  understanding 
in  innumerable  and  sometimes  imperceptible  ways,  reads 
into  the  future  his  own  prepossession,  whereas  the  executive 
trained  rigorously  in  the  logical  processes  of  thought  normally 
develops  the  forecaster's  type  of  mind.  It  is  merely  the 
proper  course  of  reasoning  to  proceed  from  the  known  to  the 
unknown,  from  the  evident  to  the  obscure,  from  the  ante- 
cedents which  are  now  seen  to  the  consequents  which  are  to  be. 

Wrong  deductions  will  no  doubt  continue  to  be  made, 
since  business  problems  are  complex,  the  facts  often  difficult 
to  secure,  and  human  powers  of  analysis  all  too  limited.  Yet 
the  process  of  forecasting  as  it  has  been  worked  out  is  intrin- 
sically sound  and  upon  it  no  limits  can  safely  be  drawn. 


270 


EFFICIENT  CONTROL  OF  BUSINESS 


Exercises 
Forecasting 

The  role  of  foresight  in  enabling  a  man  to  take  advantage  of 
business  changes  is  vital  in  its  influence  upon  profits.  The  first 
exercise  has  for  its  aim  the  testing  of  your  ability  to  predetermine 
events.     (See  Test  Chart  14.) 

As  you  survey  this  card  after  the  last  event  has  been  decided  and 
in  the  cold  light  of  what  has  happened  test  your  predictions  of  what 
was  to  happen,  what  is  your  opinion  of  yourself  as  a  forecaster? 

Perhaps  the  average  is  low.  Be  that  as  it  may,  the  really  im- 
portant thing  to  do  is  to  set  about  increasing  your  skill  as  a  business 
prognosticator.  As  a  means  toward  that  end  let  us  find  out  why 
this  average  was  not  higher: 

Was  this  prediction  based  upon  what  you  hoped  would  occur, 
instead  of  what  you  believed  would  occur?  Was  it  based  in  any 
degree  upon  fear  or  anger  or  revenge  or  self-deception?  Were  you 
entirely  open-minded  about  it? 

Were  certain  of  the  causal  factors  which  later  brought  about  the 
result  undetected  by  you  at  the  time?  In  other  words,  was  your 
analysis  seriously  incomplete? 

Did  you  miscalculate  in  estimating  the  relative  importance  of  the 
various  factors,  the   result  accordingly  being  materially  reshaped? 

Were  additional  factors,  sufficient  to  alter  the  outcome,  intro- 
duced after  your  original  prediction  was  made? 

Did  you  suspect  the  introduction  of  such  factors,  and  estimate  in 
advance  their  effect? 

Are  you  unable  to  account  for  the  failure  of  any  of  these  projects 
to  develop  as  predicted? 


I  Predict  That 

Upon  These 
Grounds 

Results* 

Comments* 

•To  be  filled  in  later,    i-ggj  Q^^^^^  j^     gj^  Forecasts 


CONTROL  THROUGH  STATISTICS 


271 


Certain  of  the  forecasts  will  have  been  successful,  however.  These 
deserve  a  similarly  careful  examination  since  if  their  occurrence 
is  dismissed  as  merely  a  case  of  "luck"  you  will  not  derive  from 
them  any  particular  improvement  in  method,  and  it  is  this  improve- 
ment in  method,  the  ability  to  increase  consistently  your  percentage 
of  correct  forecasts,  which  constitutes  the  real  goal.  Accordingly, 
try  to  account  for  these  successes  as  for  the  failures. 

The  results  of  the  two  preceding  exercises  let  us  set  clearly  before 
us,  by  means  of  Test  Chart  15.  A  survey  of  its  two  columns,  when 
completed,  suggests  several  definite  means  of  improvement.  The 
incorrect  methods  are  to  be  eliminated,  the  result-getting  methods 
developed  in  their  power  of  prevision. 

Have  you  planned,  in  surveying  the  various  means  of  improve- 
ment which  Test  Chart  15  has  suggested,  to  utilize  certain  business 
barometers  which  Babson  and  Brookmire  specify  in  their  lists  as 
given  on  page  265. 

Which  of  these  various  barometers  stand  in  close  causal  connec- 
tion with  your  own  business  ? 


Why  I  Have  Failed 

Why  I  Have  Been  Correct 

Test  Chart  15.    A  Personal  Forecast 


CHAPTER  XV 

GRAPHIC  PRESENTATION 

Though  accurate  data  and  real  facts  are  valuable,  when  it 
■  conies  to  getting  residts  the  matter  of  presentation  is  ordi- 
narily more  important  than  the  facts  themselves. — Willard 
C.  Brinton. 

Information  in  Usable  Form 

The  executive  readily  can  supply  himself  with  statistical 
data,  it  appears  evident  from  what  has  been  said  in  the  pre- 
ceding chapter;  but  the  effectiveness  with  which  he  can  use 
such  data  in  solving  business  problems  depends  to  a  large  ex- 
tent upon  the  form  in  which  it  is  presented. 

This  statement  applies  especially  of  course  to  the  men 
at  the  head  of  the  organization.  Industrial  conditions  to- 
day are  dominated  by  giant  corporations,  which  in  the  volume 
and  complexity  of  their  problems  tax  to  the  utmost  the  capac- 
ity of  their  managers.  The  heads  of  our  large  corpora- 
tions, it  is  safe  to  say,  are  the  hardest  worked  men  in  the 
world. 

But  the  strain  imposed  by  the  complexity  of  business 
problems  is  felt  also  by  men  lower  down,  in  charge  of  depart- 
ments and  divisions.  The  effect  is  sometimes  to  discourage 
any  effort  to  do  more  than  the  literal  requirements  of  one's 
job. 

"If  the  average  business  man  is  able  to  think  sufficiently 
to  keep  him  abreast  his  day-to-day  job,"  observes  Charles 
W.  Mears,  advertising  manager  of  the  Winton  Company, 
"he  feels  that  he  has  done  about  all  that  anybody  has  the  right 
to  expect  of  him." 

When  men  in  executive  positions  slip  into  the  state  of 

272 


GRAPHIC   PRESENTATION  273 

mind  thus  diagnosed  by  Mr.  Mears  it  portends  trouble  for  the 
business.  What  can  prove  more  serious  in  the  career  of  a 
going  concern  than  the  entrusting  of  its  operations,  in  many 
cases  of  vast  proportions,  to  men  who  feel  themselves  unable 
to  command  the  complexities  of  their  tasks? 

The  Mobilization  of  Business 

The  giant  corporation  at  best  is  somewhat  unwieldy  but  to 
achieve  the  greatest  success  it  must  be  able,  as  business  condi- 
tions change,  to  make  the  necessary  adjustments  with  prompt- 
ness. "It  is  always,  I  presume,  a  question  in  every  business 
just  how  fast  it  is  wise  to  go,"  says  a  noted  profit-maker,  John 
D.  Rockefeller,  in  relating  some  of  his  early  experiences,  "and 
we  went  pretty  rapidly  in  those  days,  building  and  expanding 
in  all  directions.  We  were  being  confronted  with  fresh  emer- 
gencies constantly.  A  new  oil  field  would  be  discovered, 
tanks  for  storage  had  to  be  built  almost  over  night,  and  this 
was  going  on  when  old  fields  were  being  exhausted,  so  we  were 
therefore  often  under  the  double  strain  of  losing  the  facilities 
in  one  place  where  we  were  fully  equipped,  and  having  to 
build  up  a  plant  for  storing  and  transporting  in  a  new  field 
where  we  were  totally  unprepared.  These  are  some  of  the 
things  which  make  the  whole  oil  trade  a  perilous  one,  but  we 
had  with  us  a  group  of  courageous  men  who  recognized  the 
great  principle  that  a  business  cannot  be  a  great  success  that 
does  not  fully  and  efficiently  accept  and  take  advantage  of  its 
opportunities." 

Especial  significance  attaches  to  Mr.  Rockefeller's  conclud- 
ing statement :  "A  business  cannot  be  a  great  success  that  does 
not  fully  and  efficiently  accept  and  take  advantage  of  its  op- 
portunities." 

In  order  that  it  may  fully  and  efficiently  accept  and  take 
advantage  of  its  opportunities,  a  business  must  be  kept  mobi- 
lized. 


274 


EFFICIENT  CONTROL  OF  BUSINESS 


Speeding  Up  the  Judgment 

The  mobilization  of  business  forces  has  been  vigorously 
pushed  by  the  new  school  of  scientific  managers.  Methods 
have  been  devised  for  bringing  materials,  machinery,  men, 
capital,  and  even  the  management  itself  under  close  control. 
When  this  regulating  apparatus  has  been  properly  connected 
with  headquarters,  it  is  assumed  that  the  executive,  like  the 
dispatcher  of  trains,  will  hold  the  organization  in  the  hollow 
of  his  hand. 

But  how  can  the  executive  himself,  his  problems  marshaled 
before  him,  pass  judgment  upon  them  quickly  and  accurately  f 
Too  often  the  overworked  manager,  so  intricate  are  the  prob- 
lems in  themselves  and  so  rapidly  do  they  appear  upon  his  desk, 
is  tempted  to  base  his  answers  upon  opinion  rather  than  fact 
and  decide  quickly  with  a  hope  that  his  guess  is  correct.  Such 
sacrifice  of  accuracy  to  speed  means  disaster. 

In  order  to  meet  this  man's  needs,  therefore,  the  problem- 
solving  method  described  in  a  previous  chapter  must  be  accel- 
erated in  its  operation. 

Condensed  reports,  worked  up  in  the  proper  form,  will 
usually  provide  the  desired  acceleration.  They  render  it  pos- 
sible for  the  executive  to  decide  both  rapidly  and  accu- 
rately. 

Much  has  been  accomplished  in  recent  years  in  devising 
report  forms  which  can  be  used  as  accelerators,  placing  before 
the  executive  the  statistical  information  which  he  must  know 
in  compact  shape  and  with  proper  emphasis.  Some  of  these 
"thumbnail  reports"  seem  to  have  reached  the  limit  of  the  ex- 
pressive use  of  language  in  the  conveyance  of  facts. 

But  we  need  not  stop  with  language.  There  is  a  swifter 
mode  of  expression — the  appeal  to  the  eye,  by  means  of  dia- 
grams, charts,  and  graphic  devices  of  various  kinds.  Lan- 
guage, especially  written  language,  is  comparatively  slow. 
Pictures  address  the  eye,  the  swiftest  of  the  senses.    Diagrams 


GRAPHIC   PRESENTATION  275 

and  charts,  provided  their  proportions  are  accurate,  present 
essential  relationships  at  a  glance. 

Graphs  in  the  Great  War 

These  graphic  methods  of  report  and  record  were  used 
with  striking  success  in  the  Great  War,  when  masses  of  details, 
on  a  scale  often  enormous,  were  handled  with  speed  and  ac- 
curacy. A  correspondent  thus  describes  the  methods  em- 
ployed by  General  Berthelot,  the  French  Chief  of  Stafif,  during 
the  grim  days  of  October,  19 14. 

Dunkirk,  Oct.  28  (By  mail)  :  A  man  in  pajamas  (at  least 
he  wears  them  most  of  the  time,  being  too  busy  to  dress) 
is  running  the  one  thousand  and  one  details  of  the  French 
army.  General  Joffre  is  at  the  head  and  he  handles  the  big 
questions,  presses  the  buttons,  so  to  speak,  but  General 
Berthelot,  Chief  of  Staff,  does  the  actual  work. 

After  several  trips  along  the  fringe  of  the  war,  after  meet- 
ing thousands  of  soldiers  on  the  same  day,  some  going  north, 
some  going  south,  in  what  appeared  to  be  a  hopeless  tangle, 
it  struck  me  more  forcibly  than  ever  that  the  modern  fight- 
ing machine  is  the  most  complicated  thing  on  earth. 

I  tried  to  imagine  myself  commanding  all  this,  to  grasp 
how  a  200-mile  line  of  this  sort  could  be  controlled  and  how 
it  could  possibly  be  kept  from  getting  tangled  up  with  itself 
and  without  interference  by  an  enemy.  My  curiosity  grew, 
until  I  decided  to  find  out  how  all  this  business  is  managed 
by  one  man. 

In  General  Joffre's  headquarters,  in  a  certain  long  room, 
hangs  a  special  map,  the  scale  of  which  is  i-iooo.  It  shows 
every  road,  canal,  railway,  bridle  path,  pig-trail,  bridge, 
clump  of  trees,  hill,  mountain,  valley,  river,  creek,  rill,  and 
swamp.  This  is  part  of  the  outfit.  Another  part  is  a  won- 
derful collection  of  wax-headed  pins  of  all  colors  and  sizes. 
These  represent  army  units  of  all  sizes  and  all  organiza- 
tions. Into  the  long  room  run  many  wires,  both  telephone 
and  telegraph.  Wireless  apparatus  is  also  in  this  room.  The 
way  it  works  seems  wonderfully  simple  when  it  is  explained. 

The  battle  is  about  to  commence.  The  troops  have  been 
distributed  all  along  the  200-mile  line.  The  Germans  are 
facing  them.  A  bell  rings :  "Hello  !  Yes  !  The  Germans  are 
attacking  General  Durand's  division?    They  are  in  superior 


276  EFFICIENT  CONTROL  OF  BUSINESS 

numbers?    The  General  needs  le-enforcements?    All  right." 

The  staff  officer  who  has  taken  this  information  over  the 
phone  hurries  to  where  General  Berthelot  is  sleeping.  The 
General  has  just  dozed  off.  This  is  the  first  sleep  he  has 
had  in  thirty-six  hours.  But  General  Berthelot  is  wide 
awake  in  an  instant.  He  jumps  to  the  floor,  still  wearing  his 
pajamas,  the  only  garment  he  has  worn  in  several  days.  The 
staff  officer  reports. 

In  a  twinkle.  General  Berthelot,  who  knows  his  map  as 
he  does  his  own  face,  locates  Durand's  division.  He  knows 
that  ten  miles  back  of  Durand's  command  are  quartered  a 
number  of  reserves,  under  General  Blanc,  according  to  the 
pins.  Berthelot  also  learns  from  the  pins  that  a  number  of 
autobuses  are  near  Blanc's  soldiers. 

"Order  General  Blanc,"  he  commands,  "to  re-enforce 
Durand  at  once  with  10,000  men,  four  batteries  of  75-milli- 
metre artillery,  ten  machine  guns,  and  three  squadrons  of 
cavalry.     Tell  Blanc  to  transport  his  troops  in  autobuses." 

Within  two  minutes.  General  Blanc  has  received  the  order. 
Within  five  more  he  is  executing  it,  and  General  Durand 
is  informed  that  help  is  coming  to  him. 

Then  General  Berthelot  takes  another  nap,  if  the  battle 
will  permit.  If  it  does  not,  he  stays  awake  to  direct  men 
who  are  miles  away  from  him. 

Every  time  a  bridge  is  blown  up  or  a  pontoon  has  been 
thrown  across  a  stream  or  a  food  convoy  shifts.  General 
Berthelot  gets  up  and  shifts  his  pins  to  indicate  the  change. 
Nothing  happens  along  the  200-mile  battle  line  but  that  Gen- 
eral Berthelot,  still  in  pajamas,  leaps  from  his  bed  and 
changes  the  pins  on  the  map.  The  map  must  be  kept  up  to 
the  minute.  General  Joffre  must  be  able  to  look  at  it  any 
time  of  the  day  or  night. 

As  far  as  possible,  through  information  brought  in  by 
spies  or  aviators,  the  forces  of  the  enemy  are  kept  track  of 
in  the  same  manner.  No  detail  that  is  of  use  is  overlooked. 
The  pins  indicate  even  the  size  of  the  guns,  the  kind  of  am- 
munition they  use,  and  so  on  ad  infinitum. 


Why  the  Executive  Uses  Graphs 

It  was  not  only  the  courage  and  devotion  of  French  sol- 
diers which  saved  France  and  civilization  at  the  Marne;  it 
was  also  the  development  by  the  executives  in  charge  of  a 


GRAPHIC  PRESENTATION 


277 


swift  and  reliable  method  for  handling  enormous  masses  of 
details. 

The  methods  here  utilized  are  equally  applicable  to  busi- 
ness; condensed  reports  provide  the  information  required  and 
graphic  methods  of  presentation  render  it  usable.  In  conse- 
quence, when  the  details  involved  in  the  operation  of  a  large 
scale  enterprise  have  been  condensed  into  a  few  graphic  charts 
and  laid  regularly  upon  his  desk,  the  manager  who  before  was 
overburdened  will  sense  the  significance  of  mobilization  in  his 
business. 

Graphic  methods,  in  fact,  provide  a  new  language.  Its 
symbols  to  the  initiated  convey  quantitative  facts  with  ac- 
curacy, ease,  and  rapidity. 

1.  They  substitute  facts  for  guess-work.  The  graph  calls 
for  verifiable  evidence  as  its  material;  *T  guess  so," 
cannot  be  plotted. 

2.  They  mean  organized  thinking.  Myriads  of  details 
are  summarized  that  the  essentials  may  be  set  forth. 

3.  They  keep  results  in  sight.  They  are  both  a  check 
upon  what  has  been  done  and  an  incentive  to  accom- 
plishment. The  plain  record  of  what  has  been  stimu- 
lates the  mind  to  seek  what  is  to  come  and  aids  it  in 
answering  this  question  wisely. 

In  fact,  graphic  methods  are  short  cuts  to  business  knowl- 
edge. The  essential  facts  and  relationships  which  it  might 
take  months  to  discover  through  unaided  study  are,  when  prop- 
erly presented,  focused  into  a  half -day's  time. 

Maps 

In  securing  for  himself  these  benefits  of  graphic  methods, 
the  business  man  has  at  his  command  several  different  mediums 
or  devices.  Among  these,  maps  are  available  for  a  variety  of 
purposes. 


278  EFFICIENT  CONTROL  OF  BUSINESS 

A  wall  map  for  instance  may  be  shaded  to  show  the  con- 
sumption capacity,  consumer  occupations,  yield  of  crops  per 
acre,  potential  water-power,  or  similar  information  of  a  par- 
ticular territory.  In  any  case,  a  scale  according  to  which  the 
shading  is  done  must  be  decided  upon,  usually  the  portion 
highest  in  the  particular  item  under  consideration  being  made 
solid  black  and  the  lowest  left  white.  This  scale,  it  may  be 
added,  as  a  rule  should  be  placed  for  explanation  in  a  lower 
corner  of  the  map. 

Coloring  may  be  used  in  practically  the  same  way  as  shad- 
ing, although  shading  is  better  for  showing  gradations  in  the 
same  item  and  for  purposes  of  reproduction.  The  sales  man- 
ager of  an  agricultural  implement  house,  for  instance,  when 
indicating  sections  yielding  varying  bushels  of  corn  per  acre 
will  find  a  map  of  blue,  red,  yellow,  etc.,  less  easily  intelligible 
than  a  shading  system  with  its  progressive  degrees  of  darkness. 
In  marking  ofif  the  territories  of  his  various  branch  offices, 
however,  color  proves  convenient. 

Dots  and  circles  placed  upon  the  map  convey  very  satis- 
factorily at  times  the  information  desired.  An  automobile 
manufacturer,  selecting  as  his  scale,  let  us  say,  one  dot  for 
every  five  hundred  automobiles,  pictures  to  himself  and  asso- 
ciates the  distribution  of  motor  cars  in  the  United  States.  Or 
it  may  be  he  represents  the  total  number  of  cars  in  a  state  by 
means  of  a  circle  of  given  size,  a  second  circle  representing 
those  of  his  own  manufacture. 

Increasing  the  Map's  Usefulness 

The  map  and  tack  system,  in  which  the  various  towns 
visited  by  a  salesman  are  connected  with  a  string,  has  for  some 
time  been  commonly  used  by  sales  managers  in  routing  their 
men. 

Pins  when  used  with  maps  increase  their  usefulness.  Each 
pin  may  represent  a  service  station,  a  sales  agency,  a  branch 


GRAPHIC   PRESENTATION  279 

factory,  a  prospect,  sales  of  $1,000,  or  other  items  appropriate 
to  this  method  of  presentation.  The  large  variety  of 
pins  available — plain,  colored,  numbered,  lettered,  celluloid- 
covered,  cloth-covered,  round,  square,  star,  or  flag  design — 
enable  one  to  devise  almost  any  system  one  may  desire. 

President  Simmons  of  the  Simmons  Hardware  Company 
h^s  hung  in  his  office  at  St.  Louis  a  huge  map  of  the  United 
States,  on  which  appear  colored  disks.  Each  disk  contains  as 
its  center  the  photograph  of  a  salesman,  the  position  of  the 
disk  indicating  where  the  salesman  is  traveling  and  its  color 
which  one  of  the  branch  houses  he  travels  for.  An  arrow 
back  of  the  disk  shows  by  its  color  and  direction  what  that 
salesman  is  accomplishing  in  comparison  with  his  previous 
record.  The  person  familiar  with  this  map  reads  its  whole 
complicated  story  at  a  glance. 

The  map  system  with  its  various  adjuncts  is  a  complex  and 
facile  instrument,  able  to  set  forth  data  with  considerable  fair- 
ness and  accuracy. 

"Boards"  Which  Present  Facts  Graphically 

An  office  manager,  faced  with  the  problem  of  keeping  an 
accurate  record  of  the  employees  whom  he  constantly  shifted 
from  one  department  to  another  as  the  work  fluctuated  in 
amount,  finally  hit  upon  the  checker-board  idea. 

On  a  small  card-table  he  diagramed  the  office.  Serious 
congestion  in  a  department  he  indicates  by  a  small  red  flag, 
a  surplus  of  workers  by  a  small  white  flag.  The  employees 
he  represents  by  celluloid  discs,  upon  which  their  respective 
names  are  written.  In  addition  to  this  he  has  worked  out  a 
color  scheme :  a  white  disc  indicates  an  employee  of  ordinary 
ability;  red,  a  division  head;  gold,  a  worker  to  whom  special 
responsibility  can  be  delegated;  and  half-red  and  half-white 
an  employee  in  line  for  promotion.  Tardiness  is  indicated  by 
a  small  green  thumb  tack  inserted  into  the  disc. 


28o  EFFICIENT  CONTROL  OF  BUSINESS 

Boards  frequently  prove  serviceable  for  the  display  of 
various  data.  Sales  per  week  of  the  sales  force,  with  the 
respective  contributions  of  each  member,  are  placed  upon  a 
board  in  the  salesmen's  room  for  purposes  of  record  and  in- 
centive. Interviews,  luncheon  appointments,  meetings,  and 
other  engagements,  particularly  when  the  persons  concerned 
have  an  active  part  in  these  affairs  for  which  preparation  must 
be  made,  may  be  noted  upon  small  cards  and  either  hung  upon 
hooks  or  slipped  into  recesses  upon  a  board  arranged  left  to 
right  according  to  the  days  of  the  week  and  top  to  bottom 
according  to  hours  of  the  day.  The  various  positions  of 
officers  and  employees  in  an  organization,  with  their  duties,  re- 
sponsibilities, and  connecting  lines  of  authority,  are  sometimes 
charted  by  enterprising  companies,  for  the  information  of  their 
employees. 

Control-Boards 

The  board  as  a  check  upon  the  progress  of  work  is  one  of 
its  most  common  uses.  The  architect  whose  desk  sheet  was 
shown  on  page  54  has  what  in  essence  may  be  termed  a  con- 
trol-board. Contractors,  printers,  publishers,  manufacturers 
— almost  anyone  in  fact  who  wishes  to  keep  a  check  upon  him- 
self in  carrying  through  a  joId — separate  a  piece  of  work  into 
certain  essential  processes  and  prepare  the  board  to  record  un- 
der these  headings  the  progress  to  date.  Various  elaborations 
of  the  control-board  have  been  devised,  most  of  them  receiving 
the  approval  of  the  scientific  managers. 

Geometric  Figures  as  Aids  in  Presentation 

Charts  expressing  data  by  means  of  straight  lines  are  often 
easily  made  and  effective.  A  chart  prepared  for  a  busy  manu- 
facturer by  his  accountant  was  useful  not  only  in  picturing  to 
the  executive's  own  mind  the  work  of  a  twelvemonth,  but 
proved  to  be  valuable  "ammunition"  when  he  appeared  at  the 


GRAPHIC  PRESENTATION 


281 


various  conferences  held  by  the  company's  work  managers  dur- 
ing the  year.  The  quota  for  each  plant  had  been  set  at  a  con- 
ference held  at  the  close  of  the  previous  fiscal  year,  the  pro- 
duction expected  for  each  month  being  indicated  by  a  tick  on 
a  dotted  line  which  represented  said  quota.  A  solid  line  which 
represented  what  was  actually  being  attained  was  extended 
from  month  to  month. 


SOU TMERN  RAOinC     R.  R. 


Figure  27.     A   Railroad's   Operating  Ratio 

The  Vertical  Bars  are  here  used  with  excellent  result.  A  considerable  body  of 
data  is  set  forth  clearly,  in  such  a  way  that  comparisons  can  also  be  made  with- 
out difficulty.      {Reproduced  by  permission  from   The  Magasine  of  Wall  Street.) 


Horizontal  or  vertical  bars  are  in  certain  cases  more  satis- 
factory than  lines.  Length  of  line  proportioned  to  volume  of 
the  items  under  consideration  is,  of  course,  the  essential  prin- 
ciple in  Figure  2y,  but  while  the  ordinary  line  might  show  this 
it  would  be  indistinct  as  compared  with  the  vertical  bar  used 
in  this  instance.  Production  records,  volumes  of  sales,  cost 
of  an  article,  stock  quotations,  expenses,  and  savings  are 
typical  of  items  which  lend  themselves  to  presentation  in  this 
way. 

The  bar  also  is  an  excellent  device  for  showing  component 
parts.     Two  operators,  let  us  say,  are  found  under  the  stop- 


282 


EFFICIENT  CONTROL  OF  BUSINESS 


watch  to  vary  in  the  average  time  consumed  in  performing  a 
certain  process.  This  information  is  good  so  far  as  it  goes, 
but  for  best  results  the  time  study  should  be  detailed  and 


Oper- 
ator 
NO  2 


.  3  J    -» 

— 4-5  Seconds 

" 

■^ 

2 

3 

4. 

5 

^t; 

7 

8 

Mj-a- 


29  Seconds- 


Oper- 
ator      1 
No.l 


S0 


5cale  Isec*  O.t* 


Figure  28.    Detailed  Time  Study  of  Two  Operators  Labeling  Packages 

By  this  method  of  presentation  the  reader  may  see  clearly  the  relative  length  of  time 
for  different  operations  as  well  as  the  comparison  of  total  time  taken  by  the  two 
workers.  Dimension  marks  and  figures  show  conveniently,  the  actual  number  of 
seconds  required.  The  different  operations  have  been  given  numbers  instead  of 
names.  The  scale  to  which  the  chart  is  drawn  is  named.  (Reproduced  by  permission 
from  Brinton's  Graphic  Methods  for  Presenting  Facts.) 


the  findings  presented  graphically.  This  has  been  done  in 
Figure  28.  Since  it  is  often  desired  to  present  graphically 
in  its  component  parts  the  disposition  of  the  company's  gross 
revenues,  the  relative  amount  sold  of  various  supplies  in  a 
service  station,  or  the  items  entering  into  the  cost  of  a  com- 
modity, the  horizontal  or  vertical  bar  has  here  a  considerable 
field  of  usefulness. 

Rectangles  enable  one  to  work  still  more  freely  with  areas 
than  is  possible  with  the  bar.  The  cube,  or  at  least  some  form 
of  solid,  would  seem  at  first  thought  to  be  somewhat  more 
valuable  than  the  rectangle  in  that  it  adds  the  third  dimension. 
It  is  questionable,  however,  in  view  of  the  lack  of  skill  shown 
by  numerous  makers  of  graphs,  if  to  date  the  use  of  areas 
and  solids  in  graphic  presentation  has  not  contributed  more 
of  confusion  than  of  clarity. 


GRAPHIC   PRESENTATION 


283 


Charts  Which  Confuse 

The  difficulty  is  well  illustrated  by  this  chart,  prepared  by 
the  overzealous  head  of  an  accounting  department,  picturing 
his  factory's  production  of  shoes  "in  round  numbers."  (See 
Figure  29.)  Are  these  three  figures  to  be  interpreted  on  the 
basis  of  diameter,  of  surface,  or  of  cubic  contents?  In  the  first 
case  the  gain  would  be  1:2:4,  in  the  second  1:4:8,  in  the 
third  1:8:  64,  certainly  a  considerable  variation  due  solely  to 
one's  interpretation.  It  may  be  added  that  in  this  particular 
instance  the  comparison  by  diameter  was  intended,  notwith- 
standing the  use  of  the  term  "round  numbers." 


1907  1912  1917 

Figure  29,     Factory  Production  of   Shoes   Shown  "in  Round   Numbers" 

In    diameters    these    illustrations    are    as    1:2:4;    in    areas    as    1:4:8;    and    in    volumes 

1:8:64.     The    diagrams    should    indicate  clearly    which    interpretation    is    intended    and 

include  the  data  as  well.     In  such  cases  it  is  preferable  to  use  some  forms  of  graphic 

device  in  which  this  chance  for  confusion  does  not  arise. 

The  circle  is  in  common  use  as  a  means  oi  sViowing  com- 
ponent parts.  Public  utility  corporations  during  the  last  few 
years  have  frequently  shown  in  this  way  the  disposition  of 
their  gross  revenues,  an  excellent  choice  for  the  purpose  since 
no  other  graphic  device  has  become  so  widely  known  nor  so 
generally  understood.    In  view  of  the  erroneous  theories  con- 


284 


EFFICIENT  CONTROL  OF  BUSINESS 


cerning  cost,  and  the  relation  of  his  wages  to  cost  held  by  the 
average  wage-earner,  such  charts  would  serve  a  useful  pur- 
pose generally  in  combating  the  irresponsible  statements  of 
agitators. 

Curves,  the  Graphic  Device  Par  Excellence 

The  device  which  is  most  commonly  employed  as  a  means 
for  graphic  presentation  is  the  curve.  The  reasons  for  this 
we  may  illustrate  by  citing  the  control  chart  recommended 
by  Mr.  Farnham  which  shows  the  total  net  profit  accruing 
from  a  business  each  month  in  comparison  with  the  standard 
set  on  a  proper  return  upon  the  investment.     ( See  Figure  30. ) 


-10000 

•^  ot  •  •  •*  • 

4  '  1915 

Figure  30.     Control  Curves  Showing  Gross  Earnings  of  Three  Factories 
(Reproduced  by  permission  from  the  Engineering  Magazine.) 


The  standard  profit,  in  this  case  ten  per  cent,  has  been  repre- 
sented by  a  straight  line  drawn  across  the  chart  at  the  proper 
height,  and  the  danger  point  below  which  net  profits  should 


GRAPHIC  PRESENTATION 


285 


not  fall  if  adequate  returns  are  to  be  earned,  in  this  case  set 
at  five  per  cent,  has  been  represented  by  a  lower  broken  line. 
For  purposes  of  comparison  the  average  net  profits  for  the 
previous  year  are  shown  by  a  third  horizontal  line.  These  three 
lines,  one  of  them  chiefly  of  historical  interest  and  the  others 


4000 

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Figure  31.     Curves  Used  as  a  Means  of  Executive  Statistical  Control 
(Reproduced  by  permission  from  the  Engineering  Magasine.) 


setting  forth  the  results  predetermined  by  the  management, 
comprise  what  may  be  termed  the  preliminaries. 

The  gross  earnings  month  by  month  derived  from  the 
firm's  three  factories  are  shown  in  Figure  31  by  the  three 
control  curves  marked  Works  No.  i,  Works  No.  2,  and  Works 
No.  3.     Certain  deductions,  such  as  interest,  discount,  com- 


286  EFFICIENT  CONTROL  OF  BUSINESS 

missions,  and  other  items  not  easily  charged  to  the  proper 
factory,  are  subtracted  from  the  total  profits  derived  from 
the  three  plants  and  the  balance  is  shown  by  the  "total  net 
profit"  curve. 

Variations  in  this  total  net  profit  curve  can  readily  be 
traced  to  their  respective  causes.  When  profits  slump  badly 
in  July  and  August  the  executive  need  only  glance  at  his 
curves  to  see  that  the  returns  from  Works  No.  i  were  normal 
and  that  Works  No.  3  was  surpassing  its  record  of  last  year. 
Works  No.  2,  however,  calls  for  attention.  Were  curves 
available  showing  in  detail  the  performance  of  the  three  plants, 
it  would  be  a  simple  matter  to  pass  from  this  master  chart 
into  each  further  analysis  as  appeared  desirable. 

The  control  curves  by  their  ability  to  keep  clearly  before 
the  executive  the  essentials  of  the  information  which  he  needs, 
thus  give  him  a  real  grip  upon  the  performance  of  the  busi- 
ness. Accurate,  clear,  thought-provoking,  comprehensive  in 
its  capacity  to  handle  data  and  admirable  in  the  comparison  it 
affords,  a  curve  is  the  graphic  device  par  excellence. 

Standards  for  Graphic  Presentation 

In  order  to  attain  its  highest  efficiency  as  a  language  pre- 
senting data  with  speed  and  clearness,  the  graphic  method 
should  utilize  a  set  of  somewhat  carefully  standardized  sym- 
bols. Unless  the  graphs  prepared  by  a  half-dozen  men  work- 
ing independently  upon  the  same  data  show  a  reasonable 
degree  of  similarity,  for  example,  it  is  to  be  expected  that 
much  needless  effort  will  continue  to  be  consumed  in  the 
interpretation  of  diagrams  whose  message  should  be  conveyed 
to  the  reader  at  a  glance. 

While  considerable  unnecessary  variety  now  obtains,  stand- 
ards are  in  process  of  being  worked  out.  The  American  So- 
ciety of  Mechanical  Engineers  some  time  since  invited  a 
number  of  other  scientific  societies  of  national  scope  to  co- 


GRAPHIC   PRESENTATION  287 

operate  in  a  Joint  Committee  on  Standards  for  Graphic  Pres- 
entation, the  purpose  being  to  recommend  a  small  number  of 
brief  and  simple  rules  which  may  be  used  as  a  sort  of  gram- 
mar by  persons  having  graphic  presentations  to  prepare  and 
to  interpret.  To  date  this  committee  has  drawn  up  as  a  tenta- 
tive list  the  following  seventeen  rules : 

1.  The  general  arrangement  of  a  diagram  should  proceed  from 
left  to  right. 

2.  Where  possible  represent  quantities  by  linear  magnitudes,  as 
areas  or  volumes  are  more  likely  to  be  misinterpreted. 

3.  For  a  curve  the  vertical  scale,  whenever  practicable,  should  be 
so  selected  that  the  zero  line  vv^ill  appear  on  the  diagram. 

4.  If  the  zero  line  of  the  vertical  scale  will  not  normally  appear 
on  the  curve  diagram,  the  zero  line  should  be  shown  by  the  use  of  a 
horizontal  break  in  the  diagram. 

5.  The  zero  lines  of  the  scales  for  a  curve  should  be  sharply  dis- 
tinguished from  the  other  co-ordinate  lines. 

6.  For  curves  having  a  scale  representing  percentages,  it  is  usually 
desirable  to  emphasize  in  some  distinctive  way  the  100  per  cent  line 
or  other  line  used  as  a  basis  of  comparison. 

7.  When  the  scale  of  a  diagram  refers  to  dates,  and  the  period 
represented  is  not  a  complete  unit,  it  is  better  not  to  emphasize  the 
first  and  last  ordinates,  since  such  a  diagram  does  not  represent  the 
beginning  or  end  of  time. 

8.  When  curves  are  drawn  on  logarithmic  co-ordinates,  the  limiting 
lines  of  the  diagram  should  each  be  at  some  power  of  ten  on  the 
logarithmic  scales. 

9.  It  is  advisable  not  to  show  any  more  co-ordinate  lines  than 
necessary  to  g^ide  the  eye  in  reading  the  diagram. 

10.  The  curve  lines  of  a  diagram  should  be  sharply  distinguished 
from  the  ruling. 

11.  In  curves  representing  a  series  of  observations,  it  is  advisable, 
whenever  possible,  to  indicate  clearly  on  the  diagram  all  the  points 
representing  the  separate  observations. 

12.  The  horizontal  scale  for  curves  should  usually  read  from  left 
to  right  and  the  vertical  scale  from  bottom  to  top. 

13.  Figures  for  the  scales  of  a  diagram  should  be  placed  at  the 
left  and  at  the  bottom  or  along  the  respective  axes. 

14.  It  is  often  desirable  to  include  in  the  diagram  the  numerical 
data  or  formulae  represented. 

15.  If  numerical  data  are  not  included  in  the  diagram  it  is  desif 
able  to  give  the  data  in  tabular  form  accompanying  the  diagram. 

16.  All  lettering  and  all  figures  on  a  diagram  should  be  placed  so 


288 


EFFICIENT  CONTROL  OF  BUSINESS 


as  to  be  easily  read  from  the  base  as  the  bottom,  or  from  the  right- 
hand  edge  of  the  diagram  as  the  bottom. 

17.  The  title  of  a  diagram  should  be  made  as  clear  and  complete 
as  possible.  Sub-titles  or  descriptions  should  be  added  if  necessary 
to  insure  clearness. 

The  standardization  of  graphic  methods,  through  a  gen- 
eral conformity  to  such  rules  as  these,  will  insure  a  gradual 
perfecting  of  this  already  highly  useful  language  until  we 
shall  possess  a  business  shorthand  of  the  nth  power.  With 
this  to  aid  them,  our  corporation  managers  and  those  who  are 
to  manage  the  still  greater  enterprises  of  a  decade  hence  will 
attain  that  speed  and  accuracy  of  decision  which  signifies  their 
mastery  of  facts. 

Qualities  Essential  to  the  Executive 

What  qualities  are  most  essential  in  the  success  of  an  exec- 
utive? The  concensus  of  opinion  of  276  business  men  whose 
ratings  were  secured  by  the  author  was  this  :* 

1.  Judgment,  i.  e.,  reasoning  ability,  accuracy  in  conclu- 
sions, ability  to  profit  by  experience;  and 

2.  Initiative,  i.  e.,  alertness,  imagination,  originality,  in- 
dependence in  thinking. 

These  are  the  two  qualities  with  which  the  preceding  five 
chapters  have  been  concerned.  Their  cultivation  will  render 
the  business  man  that  which,  if  he  is  to  succeed  in  a  large  way, 
he  most  of  all  should  be,  The  Thinker  in  Business. 


Exercises 
Data  You  Need 

The  investigation  of  business  establishments  with  respect  to  the 
data  with  which  they  work  reveals  two  general  defects :  The  data 
as  a  rule  are  seriously  incomplete,  and  they  are  kept  in  more  or  less 


•These  results  are  presented   with  some  detail   in   the  author's  book,  "The   Selec- 
tion and  Training  of  the   Business  Executive." 


GRAPHIC  PRESENTATION  289 

chaotic  condition.  Both  these  defects  should  be  eliminated  system- 
atically. 

Turn  to  the  sources  of  information  specified  on  pages  231  and 
265.    Which  of  these  sources  do  you  now  utilize? 

In  order  to  administer  a  business  effectively,  a  general  executive 
should  have  before  him  at  all  times  in  convenient  form  data  such 
as  the  following: 

Material  costs  Labor  turnover 

Inventories  S^j^s^  orders,  and  deliveries 

Wastes,  as  rejections,  spoiled 
work,  etc.  Sales  costs 

Manufacturing  costs  Earnings  and  dividends 

Within  each  department  graphs  can  be  kept  by  means  of  which  the 
operations  of  the  department  are  shown  in  greater  detail.  The  pur- 
chasing agent,  naturally,  will  find  it  helpful  in  placing  orders  to  have 
available  curves  showing  the  market  price  of  certain  commodities 
and  the  amount  consumed  in  his  plant.  The  sales  manager  plots  the 
total  volume  of  orders,  the  various  territory  volumes,  and  the  various 
commodity  volumes,  together  with  the  prices  secured.  The  advertis- 
ing manager  will  devise  graphs  showing  the  inquiries  and  business 
secured  by  different  advertisements  and  mediums,  and  the  production 
in  orders  of  each  particular  letter  of  his  follow-up.  These  illustrate 
only  meagerly  the  many  uses  possible. 

Do  you  possess  information  complete  enough  and  detailed  enough 
to  give  you  the  exact  knowledge  needed  in  your  work? 

Think  over  the  decisions  held  up  or  avoided  or  guessed  at  because 
sound  information  was  not  had,  and  make  note  of  what  sources,  speci- 
fied in  the  lists  to  which  reference  is  made  above,  you  do  not  now 
utilize.  What  additional  sources  of  information  could  you  make  use 
of  to  good  advantage? 

Graphic   Presentation  of  This    Material 

What  have  you  done  in  presenting  this  information  graphically? 
What  could  you  do  ? 

The  equipment  required  for  this  purpose  need  not  be  elaborate. 
A  set  of  drawing  instruments,  a  flat-topped  desk,  ink,  and  paper  com- 
prise the  essentials.  In  preparing  curves,  the  cross-ruled  paper  kept 
by  stationers  for  this  purpose  is  to  be  advised.  This  paper  can  be 
had  in  various  sizes  and  rulings,  the  smaller  squares  being  more  suit- 
able for  finer  divisions  and  accurate  work.  Scales  appropriate  to 
quantities  shown  must  be  selected  and  in  addition  the  scales  them- 
selves should  be  brought  into  such  relations  with  each  other  as  will 
present  the  particular  data  with  accuracy. 


290 


EFFICIENT  CONTROL  OF  BUSINESS 


The  system  may  appear  somewhat  complex  at  first  because  only 
after  a  time  will  you  have  selected  the  essential  facts  of  your  business 
and  acquired  the  facility  to  read  at  a  glance  these  facts  when  com- 
pressed into  graphs.  But  since  such  selection  of  essentials  can  be 
made  and  such  facility  of  interpretation  developed,  the  graphic 
method  constitutes  a  very  real  aid  in  the  mobilization  of  business. 

"Given  the  organization,"  declares  Dwight  T.  Farnham,  "the 
executive  who  has  his  business  before  him — as  a  modern  general  has 
his  battlefield  before  him  accurately  mapped  to  scale — is  much  more 
likely  to  predict  the  outcome,  and  to  realize  the  outcome  he  desires, 
than  the  man  who  depends  upon  an  uncorrelated  mass  of  recollec- 
tions and  upon  his  intuition.  And  the  executive  who,  like  the  modern 
general,  is  prepared  is  the  one  who  will  win  his  fight  upon  the  battle- 
field of  business." 


PART  VI 
PERSONAL  DYNAMICS 

The  thoroughly  healthy  person  is  full  of  optimism;  "he 
rejoiceth  like  a  strong  man  to  run  a  race."  We  seldom  see 
such  overflowing  vitality  except  among  children.  When 
middle  life  is  reached,  or  before,  our  vital  surplus  has 
usually  been  squandered.  Yet  it  is  in  this  vital  surplus  that 
the  secret  of  personal  magnetism  lies.  Vital  surplus  should 
not  only  be  safeguarded,  but  accumulated.  It  is  the  balance 
in  the  savings  bank  of  life.  Our  health  ideals  must  not  stop 
at  the  avoidance  of  invalidism,  but  should  aim  at  exuberant 
and  exultant  health. — The  Life  Extension  Institute. 


CHAPTER  XVI 

PHYSICAL   ENERGY 

Maximum   vitality  and  maximum   efficiency  are   tied  up 
with  each  other. — Luther  Gulick,  M.D. 

Pushing  the  Project  Through 

The  last  five  chapters  have  considered  the  more  strictly  in- 
tellectual aspects  of  business  management — how  to  evolve  con- 
structive ideas,  become  a  practical  thinker,  cultivate  a  sound 
foresight,  and  utilize  -graphic  methods  in  order  to  decide  more 
quickly  and  more  accurately.  These  to  the  profit-seeker  con- 
stitute important  matters,  no  doubt.  Business  is  not,  however, 
merely  an  intellectual  occupation,  but  a  game,  a  battle,  in  which 
the  man  who  wins  must  strive  with  every  faculty  tuned  to  con- 
cert pitch. 

"The  pressure  all  the  time  is  severe,"  declares  President 
Vanderlip  of  the  National  City  Bank,  "and  at  times  of  stress 
or  crisis  it  becomes  pretty  nearly  unbearable.  A  man  must  be 
able  to  stand  up  under  it  and  not  cave  in  at  a  crucial  moment." 

The  most  feasible  project  remains  barren  unless  put  into 
practical  operation,  and  it  is  thus  no  mark  of  business  superior- 
ity to  think  brilliantly  but  cease  at  that.  Effort  must  follow 
thought,  and  force  it  home. 

Accordingly,  this  chapter  and  the  next  two  chapters — 
Physical  Energy,  Power  of  Will,  and  Mental  Economy — will 
consider  the  development  and  proper  conservation  of  the  busi- 
ness man's  personal  force.  The  two  parts  which  follow — "Per- 
sonal Finance"  and  "A  Man  Among  Men" — deal  with  forces 
outside  himself  which  nevertheless  powerfully  supplement  his 
own  effort.  With  these  various  forces  mobilized,  the  execu- 
tive should  be  able  to  push  his  venture  to  a  complete  realization. 

293 


294 


PERSONAL  DYNAMICS 


The  Victories  of  Physique 

Only  in  works  of  fiction  do  men  with  new  ventures  meet 
universal  acclaim  and  live  happily  ever  afterwards.  In  prac- 
tice, as  every  battle-scarred  veteran  knows,  new  projects,  what- 
ever their  merits,  have  to  override  a  certain  amount  of  opposi- 
tion. The  minds  of  men  are  more  or  less  self -centered  and 
bound  by  habit.  These  old  grooves  of  thought  are  pleasant 
and  self-interests  remain  primary,  so  who  would  not  stone  the 
prophet  who  advocates  and  attempts  actually  to  secure  larger 
output,  less  waste,  financial  reorganization,  or  prompter  de- 
liveries ? 

The  philosopher  may  expound  his  conclusions,  leaving  men 
to  accept  them  at  leisure  though  it  take  a  century  or  more ;  the 
scientist  in  his  laboratory  shielded  from  the  world  states  calmly 
his  revolutionary  theories;  but  the  business  man  in  order  to 
realize  his  projects  must  descend  into  the  arena,  there  to  meet 
thick-skinned,  robust  personalities  face  to  face  and  force  them 
to  a  quick  decision.     This  requires  energy. 

The  star  salesman  after  a  few  days'  indisposition  finds  that 
his  sales  have  slumped ;  he  calls  these  "off  days"  and  diagnoses 
his  case  as  "lack  of  pep."  This  same  quality,  physical  vigor, 
is  likewise  essential  for  department  heads  and  chief  officials, 
and  those  conspicuously  successful  in  handling  men  have  pos- 
sessed it  in  abundance. 

The  magnificent  breadth  and  depth  of  Bryan's  chest  and 
his  superb  vital  organs  are  largely  responsible  for  the  national 
influence  exerted  for  years  by  this  not  above  average  intellect. 
Henry  Ward  Beecher,  Charles  Spurgeon,  Phillips  Brooks, 
were  men  of  splendid  physique  and  vitality.  Cyrus  McCormick 
to  the  despair  of  his  employees  was  like  a  great  engine  that 
never  tires ;  Charles  E.  Hughes,  as  his  secretary  tells  us,  "goes 
at  a  new  piece  of  work  like  a  hungry  man  at  a  meal;"  and 
Theodore  Roosevelt  has  been  described  as  "a  steam  engine 
in  trousers." 


PHYSICAL  ENERGY 


29s 


Men  of  energy  plus,  dynamic,  aggressive,  push  their  ideas 
to  completion.     Such  men  are  positive ;  motors  not  trailers. 

The  Wastes  of  Below-Par  Condition 

The  average  man  by  no  means  possesses  in  full  measure 
this  energy,  this  basic  physical  vigor. 

In  our  country  the  annual  sick  list  reaches  the  enormous 
total  of  3,000,000  persons  ill  all  the  time,  half  of  whom  ought 
not  be  sick  at  all  and  would  not  if  simple  and  known  methods 
of  prevention  were  utilized.  Over  600,000  human  lives  are 
needlessly  sacrificed  to  disease  each  year,  which  amounts  to 
6,000,000  every  ten  years  and  60,000,000  in  a  century. 

Within  the  last  thirty  years  there  has  been  an  extremely 
large  increase  in  the  mortality  from  nearly  all  the  most  deadly 
and  incurable  chronic  disorders.  Seven  great  scourges:  con- 
sumption, pneumonia,  diseases  of  the  kidneys,  cancer,  apo- 
plexy, diseases  of  the  heart  and  blood  vessels,  and  nervous 
disorders,  destroy  one-half  of  the  1,500,000  who  die  in  the 
United  States  annually,  while  typhoid  fever  and  influenza,  two 
of  the  most  common  and  most  dreaded  of  acute  diseases, 
together  kill  less  than  three  per  cent.  Cancer  kills  three  times 
as  many  as  typhoid  fever,  more  than  apoplexy,  three-quarters 
as  many  as  kidney  diseases  and  pneumonia,  and  half  as  many 
as  consumption. 

Acute  maladies  come  from  without;  they  attack  us  from 
some  foreign  country,  neighboring  city  or  neighbor's  house. 
But  these  chronic  maladies  are  the  result  of  errors  in  personal 
habits  or  unwholesome  conditions  of  life  which  pertain  to  the 
office,  the  home  or  other  immediate  environment.  The  chronic 
maladies  which  are  devastating  the  race,  which  have  diminished 
the  expectancy  of  life  for  those  over  forty  years,  and  which 
within  the  next  half  century  unless  checked  will  decrease  to  a 
marked  degree  the  average  longevity,  are  simply  the  result  of 
vicious  seed  sowing  in  erroneous  personal  habits.   Especially  is 


296  PERSONAL  DYNAMICS 

this  true  in  regard  to  habits  pertaining  to  diet  and  harmful  in- 
dulgences, the  evil  effects  of  which  the  public  know,  although 
the  knowledge  has  little  appreciable  effect  in  lessening  these  un- 
wholesome practices. 

Overlooked  Resources 

Both  body  and  brain,  in  consequence  of  the  conditions 
specified,  function  far  below  their  maximum. 

"Most  of  us  feel,"  says  Wilham  James,  "as  if  a  sort  of 
cloud  weighed  upon  us,  keeping  us  below  our  highest  notch  of 
clearness  in  discernment,  sureness  in  reasoning,  or  firmness 
in  deciding.  Compared  with  what  we  ought  to  be,  we  are 
only  half  awake.  Our  fires  are  damped,  our  drafts  are 
checked.  We  are  making  use  of  only  a  small  part  of  our  pos- 
sible mental  and  physical  resources." 

We  are  in  reality  but  half -men — battleships  which  never 
fire  a  broadside,  splendid  race  horses  at  donkey  speed,  farms 
given  over  largely  to  weeds,  heirs  camping  upon  the  outskirts 
of  their  rich  inheritance. 

Since  the  seeker  of  profits  seizes  upon  every  rich  oppor- 
tunity and  tills  it,  he  should  recognize  as  fertile  fields  these 
unused  resources  within  himself. 

Were  these  preventable  diseases  checked,  the  saving  to  the 
nation  in  chronic  invalidism  and  in  the  productive  value  of 
lives  would  not  fall  short  of  $1,500,000,000  annually;  the 
moral  benefits  are  incalculable.  Men  would  live  upon  a  higher 
plane.  Sickness  should  be  regarded  in  its  true  light  as  a  re- 
tarder  of  energy,  a  bar  to  advancement,  and  a  crime  committed 
against  the  full-men  we  ought  to  be. 

"A  sad  commentary  on  the  low  health-ideas  which  now 
exist,"  says  Irving  Fisher  of  the  Life  Extension  Institute,  "is 
that  to  most  people  the  expression  'to  keep  well'  means  no  more 
than  to  keep  out  of  a  sick  bed." 

The  Roosevelt  Conservation  Commission  on  National  Vi- 


PHYSICAL  ENERGY 


297 


tality  concludes  that  over  fifteen  years  are  lost  to  the  average 
life  through  lack  of  application  of  knowledge  which  already 
exists  but  which  simply  has  not  been  disseminated  and  applied. 
The  business  man  wants  to  add  these  fifteen  years  to  his  life 
and  throughout  his  entire  career  to  attack  each  day's  work  with 
exultant  vitality.  He  is  interested  in  programs  of  health  cul- 
ture as  a  means  to  that  end. 

To  war  against  "off  days,"  sickness,  and  disease  is  to  war 
against  incompetence,  poverty,  and  waste. 

To  practice  assiduously  the  rules  of  right  living  is  to  exalt 
energy,  force,  personal  power.  "Give  me  health  and  a  day," 
says  Emerson,  *'and  I  will  make  the  pomp  of  emperors  ridicu- 
lous." 

What  Shall  Our  Physical  Ideals  Be? 

In  mapping  out  a  practical  program  the  business  man  com- 
monly is  confused  by  the  variety  of  "cults"  and  "isms"  which, 
directly  or  indirectly,  have  to  do  with  health  and  healing. 
They  spring  up  in  the  night,  offer  him  the  most  wonderful 
remedies  (usually  for  a  substantial  consideration),  with  dia- 
grams and  advice  much  of  which  is  directly  contradictory  and 
but  little  of  it  valuable. 

Moreover,  there  are  those  strong  and  virile  people  who 
laugh  to  scorn  any  and  all  rules,  whether  prepared  by  char- 
latans or  sober  medical  bodies,  eating  and  drinking  and  work- 
ing in  utter  disregard  of  all  save  their  own  sweet  wills.  In 
reality  these  are  physical  spendthrifts,  to  whom  or  to  whose 
children  a  day  of  reckoning  will  come.  In  the  meantime,  how- 
ever, they  prove  a  stumbling  block  to  the  earnest  health  seeker. 

In  estimating  the  value  of  any  plan  of  health  culture,  one 
must  keep  perspective.  Sim  D.  Kehoe  of  Indian  club  fame 
died  of  consumption;  Dr.  Winship,  a  lifter  of  great  weights, 
died  of  prostration;  a  famous  muscle-maker  of  New  York 
was  obliged  to  seek  health  in  California  because  intent  on  de- 


298 


PERSONAL  DYNAMICS 


veloping  muscle  he  had  overlooked  lungs,  heart,  and  stomach. 

Physical  training  is  one  thing;  the  care  of  the  body  quite 
another. 

The  business  man  is  not  interested  primarily  in  knotty  bi- 
ceps, giant  legs,  nor  the  ability  to  run  a  hundred  yards  in  ten 
seconds  flat.  His  ideal  is  not  to  be  a  second  Sandow,  or 
Gotch  or  Jess  Willard,  his  aim,  not  to  break  records  but  to  fit 
himself  for  efficient  work.  Vitality  is  what  he  seeks,  the  de- 
velopment of  lungs,  heart,  stomach,  liver,  and  kidneys  in  order 
that  he  may  forge  ahead  in  business. 

Sources  of  Physical  Energy 

There  is  nothing  particularly  mysterious  about  energy ;  it  is 
simply  the  result  of  food  and  air  burned  inside  the  body.  Rapid 
oxidation  means  vigor,  non-oxidation  means  death. 

The  average  human  body  every  hour  produces  heat  suffi- 
cient to  raise  two  and  one-half  pounds  of  water  from  the 
freezing  point  to  the  boiling  point;  the  same  amount  of  heat 
that  could  be  produced  by  burning  two-thirds  of  a  pound  of 
coal.  In  doing  this  the  body  consumes  itself  at  the  rate  of 
one-eighteenth  of  its  weight  every  twenty-four  hours.  If 
this  consumption  is  to  continue  vigorously  and  incessantly, 
the  outgo  must  be  balanced  by  intake.  The  maintenance  of 
such  equilibrium  is  the  purpose  of  food. 


Food  and  Normal  Diet 

The  proper  amount  of  food  is  not  to  be  measured  by  its 
bulk,  since  some  foods  are  highly  concentrated.  The  measure 
which  scientists  have  adopted  for  stating  fuel  values  is  called 
a  calorie — the  amount  of  heat  required  to  raise  one  cubic 
centimeter  of  water  one  degree,  and  the  average  sedentary 
worker  needs  about  2,500  calories  per  day. 

This  amount  of  food  should  keep  a  person  in  normal 
weight,    a   condition   which   represents   good   daily   manage- 


PHYSICAL  ENERGY 


299 


ment  and  argues  well  for  long  life.  Insurance  companies 
have  learned  that  young  men  who  are  underweight  do  not 
constitute  good  risks  and  that  after  middle  age  overweight  is 
a  real  menace  to  health,  either  by  reason  of  its  mere  presence 
as  a  physical  handicap  or  because  of  the  faulty  habits  of  living 
that  are  often  responsible  for  its  development. 

Underweight  and  overweight  both  have  diets  and  regi- 
mens, so  that  no  mysterious  or  elaborate  "systems"  or  drugs 
are  needed.  A  man  should  consult  such  food  tables  as  are 
given,  for  instance,  in  "How  To  Live,"*  and,  after  determining 
the  amount  which  keeps  him  in  favorable  condition,  should 
vary  his  intake  according  to  the  seasons  and  the  kind  of  work 
he  does. 

The  Three  Chief  Classes  of  Foods 

The  three  chief  classes  of  foods  are  protein,  fat,  and  carbo- 
hydrates. Protein — for  example,  the  white  of  eggs  or  the  lean 
of  meat — is  in  the  main  a  tissue  builder,  serving  for  the  growth 
and  repair  of  the  body.  Fats  and  carbohydrates  are  exclu- 
sively fuel  foods,  containing  carbon  as  their  essential  element. 
Butter,  sugar,  nuts,  and  cereals  are  some  of  the  commonest 
forms  of  these  foods. 

A  diet  deficient  in  protein  permits  the  body  to  waste  away. 
If  too  abundant  in  protein,  the  liver  and  kidneys  are  over- 
worked and  putrefaction,  with  its  attendant  ills,  is  liable  to 
take  place.  The  correct  proportion,  stated  in  calories,  is  about 
one  to  nine.  Of  the  2,500  calories  required  by  the  average 
sedentary  worker,  250  calories  should  be  protein  and  2,250  fats 
and  carbohydrates. 

A  most  serious  error  in  the  average  diet  is  the  excessive 
proportion  of  protein  consumed.  This  is  usually  due  to  the 
extensive  use  of  meats  and  eggs,  although  the  inclusion  of  fish, 
fowl,  shellfish,  cheese,  peas  and  beans  in  undue  amounts  would 

•See  page  26. 


300  PERSONAL  DYNAMICS 

lead  to  the  same  result.  The  average  business  man,  it  is  safe 
to  say,  consumes  from  two  to  three  times  the  proportion  of 
protein  he  should. 

Food  Selection  and  the  Appetite 

The  need  is  for  a  better  balanced  ration ;  and  this,  in  turn, 
can  be  secured  through  the  use  of  the  food  tables  already  men- 
tioned. It  is  true,  of  course,  that  the  selection  of  food  accord- 
ing to  these  tables  is  apt  to  impress  one  as  artificial,  and  not 
a  few  decide,  "Give  me  what  my  appetite  calls  for.  It  knows 
best."  The  artificialities  of  a  modern  meal,  however,  its  ap- 
petizers, relishes,  condiments,  dainties,  numerous  courses  and 
variety  in  methods  of  cooking,  have  pretty  effectually  weaned 
the  natural  appetite  from  its  post  of  authority  and  made  it 
largely  a  creature  of  education  and  rather  bad  habits.  This 
degenerate  thing  is  no  safeguard  against  the  allurement  of  a 
skilled  chef,  the  confectioner,  the  tobacconist  and,  it  must  be 
confessed,  the  bartender. 

Restoring  the  Natural  Appetite 

Nevertheless,  the  appetite  under  normal  conditions  is  the 
system's  call  for  food  and  also  its  promise  to  digest  and  assimi- 
late properly  what  is  eaten  in  response  to  this  call.  Under  the 
proper  treatment- it  will  become  more  natural  and  better  able  to 
assume  its  normal  function ;  and  this  result  will  prove  exceed- 
ingly helpful  to  the  non-specialist  in  selecting  the  right  foods 
and  the  right .  amounts.  The  following  suggestions  will  be 
found  of  value. 

Eat  only  when  hungry.  The  demand  for  food  should  come 
from  within,  not  from  a  clock,  a  waiter,  or  a  confectioner's 
window. 

The  "all  gone"  feeling  which  may  creep  upon  one  is  com- 
monly not  the  organism's  call  for  food  but  an  irritation  pro- 
duced by  the  contact  of  the  stomach's  inflamed  walls.     Because 


PHYSICAL  ENERGY  301 

it  distends  those  walls,  food  relieves  the  condition  temporarily 
but,  since  the  irritated  linings  really  constitute  a  warning 
against  food,  a  drink  of  water  is  the  right  remedy. 

Meals  at  frequent  intervals,  particularly  the  indiscriminate 
indulgence  in  soft  drinks  and  confectionery,  allow  the  digest- 
ive organs  no  time  for  rest  and  recuperation.  The  stomach  is 
a  muscular  sack  which  like  any  other  muscle  grows  weary  if 
overworked. 

A  condition  of  hard  physical  labor  continued  to  the  hour 
of  eating  or  of  some  serious  mental  disturbance,  such  as  grief, 
unfits  one's  system  to  care  for  a  heavy  meal. 

In  general,  a  meal  should  be  eaten  when  the  digestive  or- 
gans are  insistent  and  ready  to  work. 

Masticate  thoroughly.  It  is  an  error  to  suppose  that  swal- 
lowing food  is  synonymous  with  nourishing  the  body.  A  piece 
of  steak  taken  as  food,  so  far  as  its  having  any  nutritive  value 
is  concerned,  remains  just  as  much  outside  the  body  when  it  is 
in  the  stomach  as  it  would  be  lying  on  the  back  of  the  hand — 
unless  it  be  so  changed  by  digestion  that  it  can  be  absorbed 
into  the  blood  and  assimilated  by  the  cells  of  the  body.  The 
man  who  bolts  his  food  should  not  overlook  this  fact. 

How  Thorough  Mastication  Aids  the  Digestion 

In  dealing  with  starchy  food,  the  mouth  is  a  real  organ  of 
digestion  supplying  the  saliva  that  is  essential  to  proper  diges- 
tion. Insufficient  saliva  mixed  with  the  food  results  in  im- 
perfect digestion  of  the  starchy  substances. 

The  saliva  is  alkaline,  hence  most  natural  foods,  being  of 
an  acid  flavor,  should  be  retained  in  the  mouth  a  sufficient 
length  of  time  to  become  more  or  less  alkalized.  This  is  es- 
pecially true  in  the  case  of  persons  suffering  from  sour 
stomach,  etc. 

Mastication  liquefies  the  food  and  in  this  liquefying  of  food 
in  the  mouth,  its  flavoring  substances  will  stimulate  the  taste 


302 


PERSONAL  DYNAMICS 


buds  at  the  base  of  the  tongue.  This  gives  the  stomach  and 
other  digestive  organs  an  advance  message  of  the  kinH  and 
amount  of  the  digestive  juices  required,  which  preparation  is  a 
great  aid  to  digestion. 

The  gastric  juices  penetrate  soHds  at  the  rate  of  only  one- 
twenty-fifth  of  an  inch  per  hour.  Since  the  stomach,  unless 
it  has  become  thoroughly  exhausted  with  previous  efforts  to 
empty  itself,  will  not  allow  solids  to  pass  its  portals,  insuf- 
ficient mastication  must  surely  delay  the  process  of  digestion. 

When,  in  consequence  of  proper  mastication,  all  food  is 
tasted  before  being  swallowed,  the  appetite  gives  warning 
whenever  a  sufficient  amount  of  food  has  been  eaten.  Thor- 
ough mastication  is  thus  a  sure  cure  for  overeating. 

The  more  one  chews  his  food,  the  more  natural  becomes 
his  taste  and  appetite.  The  over-seasoning  of  food,  in  order 
to  make  it  relishable  even  when  bolted,  and  the  excessive  use 
of  meat  and  eggs  which  can  be  eaten  rapidly,  are  avoided  when 
through  proper  mastication  taste  has  been  made  reliable  in  the 
selection  of  food. 

Thorough  mastication  means  giving  up  the  habit  of  forcing 
food  down.  Chew  the  first  three  mouthfuls  of  a  meal  until 
swallowing  becomes  involuntary  and  the  slow  pace  thus  estab- 
lished will  in  time  come  to  care  for  the  rest  of  the  meal  with- 
out further  thought. 

Eating  when  hungry  and  masticating  thoroughly  do  not 
require  the  giving  up  of  all  things  that  taste  good.  It  is  true 
in  many  cases  that  sacrifices  have  to  be  made  but  the  net  result 
is  not  to  diminish  but  to  increase  the  enjoyment  of  food. 


Air  as  an  Energizer 

In  the  search  for  best  methods  of  increasing  the  output  of 
physical  energy,  air  oftentimes  impresses  one  as  being  too 
much  of  a  "nothing"  to  deserve  serious  consideration.  Yet 
while  air  i§  invisible  it  nevertheless  is  a  real  substance,  one  cubic 


PHYSICAL  ENERGY  303 

foot  of  it  weighing  564  grains.     It  has  a  definite  composition, 

which  is  changed  by  its  being  breathed. 

The  following  table  shows  how  breathing  changes  the  air's 

composition : 

Per  cent,  of  volume  Entering        Leaving 

Oxygen 20.26  16.00 

Nitrogen 78.00  75oo 

Water  vapor 1.70  5.00 

Carbon  dioxide .04  4.00 

What  does  this  difference  signify?  Simply  that  within 
the  lungs  changes  vital  to  life  are  constantly  taking  place — 
oxygen  absorbed  into  the  blood,  carbon  dioxide  and  water 
vapor  expelled. 

Body  and  brain  are  but  myriads  of  tiny  cells,  furnaces  in 
which  food  and  oxygen  unite  to  form  the  vital  fires  of  life. 
Air  is  thus  a  true  energizer.  Our  food,  however  well  digested 
and  assimilated,  without  oxygen  is  just  as  useless  as  coal  with- 
out draft  in  a  furnace. 

Invigorating  versus  Devitalizing  Air 

Oxygen  is  a  vital  principle  in  air,  and  its  removal  means 
vitiation.  The  lungs  throw  off  3,000  gallons  of  poison  air 
per  day,  every  pint  of  which  will  spoil  for  breathing  purposes 
an  entire  barrel  of  pure  air.  In  consequence,  the  air  in  an  or- 
dinary office  should  be  changed  from  four  to  six  times  an  hour. 

The  enemies  of  pure  air,  which  in  the  office  one  must  com- 
monly guard  against,  are  gas  jets,  tobacco  smoke,  and  the  old- 
fashioned  feather  duster. 

An  overheated  room  is  enervating.  As  a  usual  thing  a 
temperature  not  above  70° — even  five  to  ten  degrees  lower  for 
persons  in  good  health — increases  both  mental  and  muscular 
efficiency. 

Stagnant  air  means  poison  breathed  in  and  breathed  out 
successively.     But  when  the  air  is  put  into  motion,  either  by 


304  PERSONAL  DYNAMICS 

natural  movement  or  by  artificial  means,  the  poisons  are  swept 
away  and  air  with  its  normal  proportion  of  oxygen  may  take 
its  place.  The  electric  fan  in  an  office  has  a  distinct  hygienic 
value. 

Man  is  by  nature  an  outdoor  animal  and  though  for  pur- 
poses of  business  he  may  shut  himself  inside  some  office,  he 
must  never  forget  the  call  of  the  great  outside.  A  farm  to 
the  business  man  as  far  as  crops  are  concerned  is  usually  an 
expensive  joke,  yet  health  is  there.  Lacking  farms  and  even 
denied  vacations  year  after  year,  men  might  still  easily  spend 
more  time  outdoors  every  day  than  they  do. 

A  third  of  our  time  is  spent  in  bed,  in  other  words,  eight 
hours  daily  in  which  to  a  greater  degree  than  during  the  day 
we  control  our  air  supply.  The  open  bedroom  window,  better 
still  the  window  tent,  the  open  tent,  and  the  outdoor  sleeping 
porch  have  proved  themselves  for  generations  so  beneficial  for 
sick  people  that  all  well  people  will  eventually  recognize  them 
as  worth  while. 

Making  the  Best  Use  of  Air 

The  nose  performs  two  important  functions  in  breathing. 
Air  entering  the  nostrils  is  strained  of  its  dust  particles  and  if 
below  body  temperature  is  warmed  as  it  passes  along  the  nasal 
cavity  richly  supplied  with  blood  vessels.  The  too  common 
practice  of  breathing  through  the  mouth  is  thus  doubly  bad; 
and  the  gratification  one  might  feel  over  the  fact  that  a  certain 
book  entitled  "Shut  Your  Mouth"  has  passed  through  several 
editions  is  tempered  by  the  feeling  that  common  sense  should 
have  rendered  such  advice  unnecessary. 

In  natural  breathing  both  chest  and  abdomen  should  ex- 
pand and  contract  together.  Chest  breathing  alone,  caused  by 
wrong  habits  or  constrictions,  such  as  a  tight  belt  at  the  waist, 
is  artificial  and  deprives  the  body  both  of  its  due  volume  of  air 
and  of  the  good  exercise  that  comes  from  full,  natural 
breathing. 


PHYSICAL  ENERGY 


305 


The  flat  chest  advertises  to  the  world  that  its  owner  does 
not  know  how  to  breathe,  that  he  has  a  predisposition  to  lung 
diseases,  and  that  with  a  body  half  nourished  and  half  suf- 
focated he  is  prepared  to  do  only  one-half  a  man's  work. 
These  things  surely  are  not  the  marks  of  an  efficient  man,  and 
they  can  be  avoided. 

In  ordinary  breathing  only  about  ten  per  cent  of  the  lung 
contents  is  changed  at  each  breath.  Deep  breathing  alone,  by 
causing  the  air  to  penetrate  into  the  more  remote  and  minute 
chambers,  forces  the  whole  lung  into  action,  promotes  liver 
and  abdominal  circulation,  sets  stagnant  blood  into  circulation, 
favorably  influences  the  blood  pressure,  and  heightens  the  brain 
activity. 

Air  is  an  invigorator,  a  blood  purifier  or  spring  tonic  which 
is  without  snare  and  delusion,  a  food  without  money  and  with- 
out price. 

Bodily  Poisons 

When  food  and  air  combine  within  the  body  energy  is  lib- 
erated. So  far  so  good,  but  oxidation  while  it  results  in  en- 
ergy also  forms  waste  products.  Fatigue  poisons  develop  in 
the  muscles  and  brain  tissues,  fermentation  in  the  mouth,  pu- 
trefaction in  the  intestines,  and  sundry  other  poisons,  such  as 
spoiled  foods,  alcohol,  tobacco,  and  drugs,  are  introduced  into 
the  system  direct. 

Stupefied  by  one  or  more  of  these  various  poisons,  the 
average  person  "cannot  strike  the  pace  he  desires" ;  he  lacks 
''pep,"  enthusiasm,  ability  to  concentrate  and  push  his  work. 
While  suffering  from  the  irritation  and  melancholy  induced 
by  this  poisoned  condition,  otherwise  sensible  men  are  guilty 
of  explosions  of  temper  and  absurd  judgments  which  shame 
their  saner  moments.  Poison  in  brain  and  muscle  is  like  sand 
in  the  bearings  of  a  watch. 

Headache  powders,  "cocktails,"  tea  and  coffee,  stomach 


3o6 


PERSONAL  DYNAMICS 


bitters,  sarsaparillas,  liver  pills  and  cathartics  are  swallowed 
in  vast  quantities  by  the  victims  of  sluggish  livers,  bad  teeth, 
constipation  and  intestinal  intoxication,  in  the  vain  search  for 
relief.  Their  blood  is  foul  with  poison  and  its  purification  de- 
pends upon  proper  hygiene,  not  the  putting  into  it  of  ill  tasting 
or  bad  smelling  drugs. 

Don't  Increase  the  Handicap 

It  is  essential  first  of  all  to  exclude  poisons  from  the  body 
in  so  far  as  such  a  course  is  practicable.  The  eating  of  de- 
cayed food  and  the  use  of  habit-forming  drugs  torment  the 
body  with  unnecessary  enemies. 

It  is  true  that  alcohol  is  widely  used  and  that  not  a  few 
believe  that  it  enables  them  to  work  more  effectively.  Yet 
scientific  experiments  have  shown  that  in  reality  alcoholic 
beverages  merely  numb  the  sense  of  fatigue  and  so  deceive 
the  user.    You  cannot  cheat  Nature  with  a  lead  nickel. 

The  evidence  as  to  smoking  is  not  yet  so  conclusive  as 
in  regard  to  alcohol,  but  the  indications  studied  are  adverse. 
It  is  true  that  the  nicotine  contained  in  one  cigar  is  small  in 
amount  and  most  smokers  assert  that  they  will  stop  smoking 
when  it  begins  to  hurt  them.  But  experiments  at  the  Pas- 
teur Institute  have  shown  that  the  long-continued  use  of  very 
minute  doses  of  poisons  ultimately  produces  appreciable  harm, 
and  the  claim  that  one  will  stop  before  being  injured  is  rarely 
carried  out.  In  practice,  it  is  easier  to  abstain  than  to  be 
moderate. 

Mouth  Sanitation 

A  second  source  of  infection  arises  from  the  fact  that  the 
mouth  is  necessarily  exposed  to  numerous  bacteria  and  its 
powers  of  protection  are  inadequate.  Food  particles  left  be- 
tween the  teeth  or  on  their  surface  putrefy  under  bacterial 
action.     Cavities  are  caused  in  the  teeth  which  harbor  more 


PHYSICAL  ENERGY  307 

bacteria.  The  gums  are  also  liable  to  infection,  which  as  it 
progresses  destroys  the  membranes  that  hold  the  tooth  firm  in 
its  socket.  Such  gum  infection,  it  is  claimed,  causes  the  loss 
of  more  teeth  than  does  decay. 

This  infection,  however,  is  not  limited  in  its  evil  effects  to 
the  mouth.  The  bacteria  harbored  in  a  decayed  tooth  or  dis- 
eased socket  under  a  tooth  later  migrates  to  the  blood,  attack- 
ing the  tissues  in  which  they  can  thrive  best.  In  this  way  the 
evils  of  decayed  teeth  and  infectious  gums  menace  the  entire 
system. 

Scrupulous  cleanliness  is  the  best  antidote  to  mouth  infec- 
tion, and  in  general  is  all  that  is  required.  Teeth,  tongue  and 
gums  should  be  cleaned  night  and  morning  by  the  brush,  ap- 
plied with  a  rapid  rotary  movement.  Tooth  powders  and  paste 
and  mouth  washes,  properly  prescribed,  are  advisable,  as  is  also 
the  periodic  examination  and  cleaning  of  the  teeth  by  k 
dentist. 

Constipation,  the  Anti-efficiency  Malady 

A  more  serious  danger,  in  truth  it  might  well  be  called  the 
worst  of  all  anti-efficiency  maladies,  is  constipation.  The  in- 
testinal contents  if  too  long  retained  putrefy.  The  poisons 
thus  produced  are  absorbed  into  the  blood  and  a  series  of  ail- 
ments result. 

"It  is  my  firm  conviction,"  said  Metchnikoff,  the  eminent 
Russian  scientist,  "that  if  we  could  preserve  a  freedom  from 
intestinal  bacteria,  we  would  prevent  most  of  the  diseases 
that  can  be  traced  to  the  action  of  these  germs,  which  include 
chronic  heart  disease,  arteriosclerosis,  and  most  kinds  of  head- 
aches. Not  only  that,  but  we  would  greatly  prolong  life,  be- 
cause the  greatest  cause  of  old  age — the  absorption  of  bac- 
terial poison  in  the  intestines — would  be  non-existent." 

The  man  who  accepts  constipation  as  a  matter  of  course 
to  be  dealt  with  by  a  cathartic  ought  to  realize  that  its  con- 


3o8  PERSONAL  DYNAMICS 

stant  and  cumulative  tax  often  ends  in  grave  consequences 
and  that  its  elimination  will  probably  do  as  much  as  any  other 
one  thing  to  add  zest  to  the  day's  work.  For  some  people  it  is 
the  greatest  bodily  ill  they  have  to  suffer. 

The  best  regulators  of  the  bowels  are  foods.  Prunes,  figs, 
most  fruits  except  bananas,  fruit  juices,  all  fresh  vegetables, 
wheat,  and  whole  grain  cereals  are  laxative  in  their  effect. 
They  either  stimulate  a  flow  of  juices  into  the  intestinal  tracts 
or  their  residue  constitutes  a  bulk  which  the  intestinal  muscles 
may  grip.  On  the  other  hand,  milk,  corn-starch,  white  of 
egg,  and  white  wheat  flour  have  a  constipating  tendency ;  they 
are  so  fully  digested  that  the  intestines  are  left  without  bulk  to 
work  upon. 

The  drinking  of  cold  water  freely,  especially  before  break- 
fast, both  stimulates  the  digestive  organs  and  tends  to  prevent 
that  hardening  of  the  intestinal  contents  characteristic  of  con- 
stipation. Six  glasses  every  day,  the  old  saying  is.  Allow 
the  system  its  inner  bath. 

An  excellent  treatment  for  constipation,  particularly  for 
those  who  may  prefer  a  diet  which  possesses  insufficient  bulk, 
is  the  use  of  wheat  bran  daily.  From  two  to  four  tablespoon- 
fuls  of  bran  mixed  in  water  or  milk  and  taken  before  breakfast, 
or  two  tablespoonfuls  taken  with  each  meal  in  which  bulky 
foods  are  not  eaten,  act  as  a  water  carrier  and  a  sweep  to  the 
intestinal  tracts.  Agar-agar,  a  Japanese  seaweed  product,  is 
recommended  for  the  same  purpose.  It  is  to  be  hoped  that 
the  recent  action  of  several  manufacturers  of  breakfast  foods 
in  putting  on  the  market  the  more  palatable  cooked  bran  will 
be  followed  by  a  great  increase  in  the  use  of  this  simple  and 
inexpensive  remedy  for  constipation. 

The  culture  of  germs  able  to  combat  intestinal  putrefaction 
is  another  remedy  proposed.  The  drinking  of  sour  milk  or 
the  taking  of  sour  milk  tablets  is  based  upon  the  fact  that  the 
bacteria  of  putrefaction  do  not  thrive  in  lactic  acid,  and  if  care 


PHYSICAL  ENERGY 


309 


is  taken  to  keep  the  favored  culture  alive  and  vigorous  this 
method  will  do  much  good. 

The  kneading  of  the  abdomen  thoroughly  constitutes  still 
another  effective  measure.  This  practice  has  been  developed 
by  the  osteopath  into  a  skilled  art,  although  practically  anyone 
can  perform  such  a  kneading  of  the  abdomen  as  will  be  a  bene- 
fit to  himself.  Since  this  kneading  derives  much  of  its  value 
from  the  action  upon  the  large  intestine,  a  knowledge  of  the 
location  of  this  intestine  and  the  direction  in  which  its  con- 
tents move,  which  can  easily  be  gained  from  the  diagrams 
shown  in  almost  any  text  on  physiology,  is  desirable  as  a  pre- 
liminary. 

The  natural  instinct  to  defecate  if  obeyed  and  made  a 
regular  habit  is  in  itself  one  of  the  most  simple  and  effective 
of  health  measures.  Owing  to  the  demands  of  civilized  life 
this  instinct  is  usually  deadened  through  failure  to  exercise 
it  regularly  and  can  be  restored  to  its  normal  sensitiveness 
only  by  a  few  weeks  of  special  care. 

Exercise  and  Energy 

The  man  who  is  out  for  big  success  in  business  wants  a 
condition  of  maximum  energy,  so  that  he  enjoys  tackling  his 
work  day  by  day,  so  that  he  radiates  vigor  and  cheerfulness 
and  spurs  associates  and  subordinates  to  enthusiastic  effort. 

"To  what  do  you  owe  your  wonderful  vitality?"  Doctor 
Marden  once  asked  Russell  Sage. 

"I  never  smoke,  I  never  drink  any  liquors,  I  retire  early 
and  get  up  early,  and  take  care  of  myself  in  every  possible 
way.     Why  should  I  not  be  healthy?" 

It  is  a  question  whether  that  program  was  not  merely 
one  of  resisting  decay.  Russell  Sage  had  no  doubt  unusual 
natural  vitality  but  for  most  executives  something  more  is 
needed  if  they  are  to  reach  their  maximum.  In  consequence, 
they  must  needs  exercise  as  well,  since  the  muscular  system. 


3IO 


PERSONAL  DYNAMICS 


along  with  food,  air  and  poison,  has  its  influence  upon  energy 
production. 

When  a  muscle  contracts,  the  veins  are  compressed  and 
blood  laden  with  waste  is  forced  toward  the  heart ;  when  it  ex- 
pands, the  arteries  conveying  blood  from  the  heart  widen  and  a 
freer  circulation  ensues.  The  amount  of  blood  which  flows 
through  a  muscle  during  exercise  is  greater  than  when  that 
muscle  is  at  rest;  in  fact,  experiments  prove  the  flow  during 
exercise  to  be  three  times  as  great. 

Cold  hands  and  feet  are  the  ear-marks — pathological  tell- 
tales— of  a  sedentary  life;  improved  circulation — an  abound- 
ing vitality  reaching  to  all  parts  of  the  body — is  the  indicator 
of  health  and  exercise. 

Increased  circulation  quickens  the  normal  respiration.  The 
amount  of  oxygen  taken  into  the  lungs  and  carbon  dioxide 
given  out  is  increased  during  active  physical  exercise  from  loo 
to  600  per  cent.  The  flat-chested,  devitalized  man  is  made  by 
exercise  to  breathe  more  rapidly  and  more  deeply,  and  thus 
corrects  his  bad  physical  condition. 

The  increased  amount  of  heat  formed  in  the  muscles  dur- 
ing exertion  brings  more  blood  to  the  surface  "and  stimulates 
the  sweat  glands  into  activity.  "In  the  sweat  of  thy  face  shalt 
thou  eat  bread,"  says  the  Good  Book,  advice  valuable  to  finan- 
ciers as  well  as  to  manual  workers.  The  latter  exercises  at  his 
work,  the  former  must  supplement  his  mental  work  by  physi- 
cal exercise. 

In  the  digestive  organs  the  enhanced  blood  supply  relieves 
abdominal  congestion  with  its  consequent  train  of  headache  and 
depression,  sharpens  the  appetite,  quickens  the  digestion,  and 
promotes  the  assimilation  of  food. 

The  resultant,  that  which  primarily  is  sought  by  the  busi- 
ness man,  is  an  improved  quality  of  brain  work.  The  vital 
organs  when  they  have  been  induced  to  normal  action  through 
systematic  exercise  contribute  to  clearness  of  mind,  calmness 


PHYSICAL  ENERGY 


3" 


of  judgment,  serenity,  and  poise — the  marks  of  an  efficient 
mind. 

"Spectatoritis"  a  Serious  American  Disease 

These  benefits  of  exercise  are  lost  to  great  numbers  of  busi- 
ness men  either  because  they  beHeve  themselves  too  busy  or 
have  the  v^rong  idea  of  what  constitutes  exercise.  The  plea 
of  "too  busy"  will  scarcely  bear  analysis  since  the  question  is 
not  how  many  hours  do  you  work  but  what  you  get  done-. 
The  man  who  through  exercise  is  able  to  attack  his  work  with 
zest  places  to  his  credit  more  work  and  of  better  quality  than 
his  non-exercising  competitors. 

The  wrong  idea  of  what  constitutes  exercise  is  strikingly 
illustrated  in  the  great  American  game  of  baseball.  Eighteen 
men,  experts  highly  trained  and  paid,  do  all  the  playing  while 
15,000  look  on.  As  Professor  Ross  aptly  puts  it,  spectatoritis 
has  become  a  most  serious  American  disease.  In  golf,  tennis, 
foot-ball,  boating,  polo,  hockey,  boxing,  racing  and  track  events, 
the  same  criticism  is  justified — the  American  is  so  upset  with 
the  mere  desire  to  win  that  he  demands  the  salaried  expert  and 
thus  loses  the  positive  benefits  that  would  accrue  to  his  own 
body  if  he  himself,  no  matter  how  amateurishly,  would  only 
take  part. 

Six  Essentials  for  a  System  of  Exercise 

In  devising  a  system  of  exercise  for  his  own  use  the  reader 
will  find  helpful  the  following  list  of  essentials.  Detailed  ex- 
planations and  suggestions,  on  account  of  lack  of  space, 
have  necessarily  been  omitted  but  these  are  well  set  forth  in 
the  books  to  which  reference  will  be  made. 

Organic  vigor,  not  simply  muscular  strength,  is  the  aim. 
The  exercise  which  the  business  man  needs  most  is  that  which 
tones  up  his  digestive  organs,  lungs,  heart,  liver  and  kidneys. 
He  leaves  it  to  gymnasts  or  prize  fighters  to  develop  enormous 


312 


PERSONAL  DYNAMICS 


muscles,  since  with  him  brain  counts  much  and  brawn  Httle. 

All  around  development  of  the  body  ^is  superior  to  speciali- 
sation. The  professional  athlete  is  out  to  break  records, 
even  though,  as  is  usually  the  case,  this  leads  to  overdevelop- 
ment in  some  one  direction.  He  is  a  physical  specialist,  but 
this  the  business  man  is  not. 

The  exercises  selected  should  be  corrective  in  nature. 
Should  he  look  himself  over  from  the  standpoint  of  physical 
perfection  the  reader  will  probably  discover  various  defects. 
Perhaps  his  shoulders  are  round  and  his  chest  flat,  or  it  may  be 
his  abdomen  is  disproportionately  large  and  his  legs  slender. 
In  any  case  there  are  corrective  exercises  devised  to  remedy 
this  particular  defect,  and  these  are  of  the  greatest  importance 
to  him. 

Exercise  which  is  agreeable  is  much  to  be  preferred.  Going 
through  a  series  of  exercises  in  a  perfunctory  way  is  bene- 
ficial, notwithstanding  the  commonly  accepted  view  to  the  con- 
trary. But  not  so  beneficial  as  when  the  movements  are  done 
enthusiastically.  Interest  in  the  exercise,  whatever  it  may  be, 
is  a  mental  as  well  as  a  physical  recreation. 

Moderation  is  the  ideal  in  exercise.  The  muscular  tissues 
during  contraction  are  constantly  being  destroyed,  but  under 
normal  conditions  the  process  of  replacement  keeps  even  pace. 
However,  the  too  rapid  destruction  of  tissues  which  occurs 
during  violent  exercise  overtaxes  the  system  of  non-athletic 
business  men  and  the  various  acids  and  poisons  which  ac- 
cumulate in  the  muscles  cause  soreness  and  a  general  sensation 
of  fatigue.  Such  exercise  is  a  detriment,  not  a  builder  of  vi- 
tality. The  proper  plan  is  moderate  exercise  taken  with  regu- 
larity. 

Simplicity  is  essential  in  any  scheme  of  exercise.  The 
plaint  of  many  a  hard-worked  business  man  upon  being  urged 
to  exercise  is,  "I  haven't  the  time  and  besides  I  cannot  afford 
it."     Without  doubt  he  is  sincere  in  his  behef ;  exercise  to  him 


PHYSICAL  ENERGY 


313 


I 


means  a  half  day  trip  into  the  country  with  a  dribble  of  bills 
for  carfare,  golf  balls,  caddy  hire,  club  fees,  refreshments, 
dinners,  etc.,  or  perhaps  a  gymnasium  with  elaborate  apparatus 
and  trained  instructors  ready  to  direct  each  movement.  The 
benefits,  in  view  of  the  burdens,  do  not  seem  worth  while. 

A  full  array  of  paraphernalia  with  skilled  instructors,  no 
doubt  is  desirable,  but  the  lack  of  it  need  deter  no  man  from 
exercising. 

Walking  brings  many  muscles  into  play  and  is  an  outdoor 
exercise  as  well.  Instead  of  waiting  for  street  cars  or  de- 
pending upon  an  automobile  for  every  move,  one  should  make 
it  a  point  to  walk  whenever  possible.  Take  luncheon  several 
blocks  from  the  office  and  in  going  home  drop  off  the  car  some 
distance  away  and  finish  the  journey  on  foot. 

A  system  of  exercises  requiring  no  apparatus  whatever  can 
be  devised,  and  made  so  simple  that  one  can  practice  at  home, 
at  the  office,  or  even  on  his  walk. 

Maintaining  Good  Posture 

A  suggestion  for  the  building  of  vitality  is  the  maintenance ' 
of  good  posture,  which  although  so  simple,  possesses  decided 
effectiveness  and  can  be  put  into  practice  whenever  one  sits 
or  stands. 

Persons  seated  at  desks  very  commonly  assume  sprawling 
attitudes,  the  spine  curved,  the  shoulders  hunched  up,  the 
elbows  set  forward  and  the  weight  resting  on  the  buttocks. 
When  walking,  their  posture  is  likewise  bad ;  the  shoulders  are 
rounded,  the  arms  hang  in  front  of  the  body,  the  head  thrusts 
forward,  the  chest  is  depressed  and  the  stomach  protrudes. 

This  incorrect  posture  when  habitual  produces  a  stagna- 
tion of  blood  of  the  abdomen  in  the  liver,  which  is  followed  by 
feelings  of  despondency  and  mental  confusion,  headache,  cold- 
ness of  hands  and  feet,  and  chronic  fatigue  or  neurasthenia. 
Moreover,  the  physical  slouch  is  more  than  likely  to  be  a  mental 


314  PERSONAL  DYNAMICS 

and  moral  slouch,  although  the  rule  may  have  its  notable  ex- 
ceptions. 

Merely  holding  the  body  erect — chest  out,  head  back  on  the 
shoulders,  trunk  firm,  weight  on  the  toes — involves  active  and 
easy  control  of  many  muscles.  The  business  man  who  forms 
the  habit  of  proper  posture  can  give  himself,  in  the  course 
of  the  day's  activities,  almost  as  much  physical  training  as  he 
could  obtain  in  a  gymnasium.  The  exercise  is  gentle.  He 
can  keep  it  up  all  day  long  without  danger  of  overdoing  and 
without  in  the  smallest  degree  interfering  with  the  duties  of 
his  position.  Sandow,  the  famous  muscle  builder,  remarked 
years  ago  that  anyone  can  obtain  sufficient  exercise  merely  by 
flexing  his  own  muscles  if  he  will  do  it  systematically. 

Says  Doctor  Fisk,  "The  man  who  stands,  walks,  and  sits 
erect,  who  treads  the  earth  as  though  unafraid,  develops  a 
self-respect  which  commands  respect  from  others;  he  acquires 
a  certain  habit  of  alertness,  of  looking  the  world  and  its  trou- 
bles squarely  in  the  face." 

Lessons  from  Our  Army 

It  is  evident  that  physical  energy — whatever  may  be  the 
reader's  own  condition — is  not  a  matter  of  chance  but  is  di- 
rectly under  his  control  and  can  be  increased  in  a  perfectly  defi- 
nite and  practical  way  by  those  who  care  enough  to  do  so. 

Significant  light  has  been  cast  on  this  subject  in  recent 
months  by  the  nation's  experience  in  fitting  its  men  for  war. 
A  large  percentage  of  the  drafted  men — nearly  one-third  of 
the  entire  number  drawn  in  some  communities — had  to  be 
rejected  for  ailments  or  physical  weaknesses  which  were 
largely  preventable.  These  were  merely  average  young  men, 
all  of  them  in  the  period  of  greatest  vigor,  it  is  true,  but  rep- 
resenting the  entire  population.  What  is  even  more  signifi- 
cant for  our  purpose  is  the  large  number  of  officers,  experi- 
enced and  highly  trained  men,  who  had  to  be  dismissed,  some 


PHYSICAL  ENERGY 


315 


of  them  from  positions  of  great  responsibility  which  they 
were  especially  qualified  to  fill,  because  of  physical  weakness. 
These  men  were  executives^  their  duty  the  direction  of  other 
men  in  circumstances  of  unusual  strain.  They  had  all  re- 
ceived thorough  physical  training  at  the  military  academy — 
they  were  "fit"  when  they  began  their  executive  careers — ^but 
some  way  or  other  they  had  developed  weakness  and  now  at 
what  should  have  been  the  moment  of  greatest  usefulness, 
they  were  not  able  to  carry  the  exceptional  strain  brought  by 
the  exceptional  opportunity;  they  had  to  drop  out  of  the  line. 

On  the  other  hand,  these  army  records  are  full  of  en- 
couragement for  men  of  the  type  of  our  executives.  In  the 
officers'  training  camps  hundreds  of  men  over  thirty  years  of 
age,  largely  from  executive  positions  in  business  life,  were 
built  up  through  scientific  and  thorough  instruction  to  a  health 
and  vitality  of  which  they  had  not  dreamed. 

What  Uncle  Sam's  discipline  did  for  them,  what  Mul- 
doon's  training  has  done  in  a  more  limited  way  for  his  pa- 
tients, cannot  the  executive  who  has  not  had  this  training  but 
who  takes  his  own  career  seriously,  do  for  himself?  Responsi- 
bilities held  him  at  home  in  the  second  line  of  defense.  All 
the  more  need,  therefore,  that  he  make  himself  as  fit  for  carry- 
ing the  responsibilities  of  business  as  those  who  went  "over 
there."  They  are  back  or  coming  back — and  he  with  them 
wants  to  be  a  pace-setter  in  business. 

Rules  for  Health  Culture 

The  present  chapter  will  aid  in  this  direction.    It  has  aimed 
to  emphasize  the  physical  resources  unused  within  us  and  the 
practical  measures  by  which  to  unlock  them.     It  may  now  be 
summarized  as  follows : 
I.  Food: 

Eat  the  amount  that  keeps  you  in  favorable  condition  of 

weight. 


3i6  PERSONAL  DYNAMICS 

Avoid  overeating  and  overweight. 
Balance  the  diet  according  to  the  proper  proportions  of 
protein,  fats  and  carbohydrates. 

Eat  sparingly  of  meat  and  eggs. 
Eat  only  when  hungry.. 

Avoid  indiscriminate  eating  and  frequent  meals. 
Masticate  thoroughly. 

Do  not  bolt  your  food  or  cater  to  a  depraved  appetite. 

2.  Air: 

Breathe  through  the  nose. 

The  open  mouth  represents  bad  hygiene. 
Breathe  deeply. 

Keep  free  from  shallow,  rapid  chest  breathing,  tight 

coats  and  belts. 
Seek  fresh  air. 

Avoid  stuffy  churches,  tobacco-smoke  rooms,  gas  jets, 

and  dust. 
Be  outdoors  whenever  you  can. 

Close  confinement  indoors  is  unnatural  and  often  is 

avoidable. 

3.  Poison  : 

Choose  non-poisonous  foods  and  drinks. 

Avoid  drugs,  alcoholic  beverages,  condiments,  and  de- 
cayed food. 

Keep  the  mouth  clean. 

Adopt  measures  to  prevent  infected  teeth,  tongue  and 
gums. 

Drink  water  freely. 

Do  not  neglect  the  inner  bath. 

Evacuate,  thoroughly,  regularly,  and  frequently. 
Avoid  cathartics  but  adopt  natural  measures. 

4.  Exercise: 

Develop  primarily  the  vital  organs. 


PHYSICAL  ENERGY 


317 


Do  not  aim  to  become  a  muscular  specialist. 
Adopt  corrective  measures. 

Avoid  defects  and  one-sided  development. 
Exercise  moderately  but  regularly. 

Eschew  violent  or  spasmodic  exertion. 

Observe  a  correct  posture  when  you  sit  or  stand. 

Do  not  overlook  the  benefits  of  this  and  other  simple 

forms  of  exercise. 


Exercises 

Walter  Camp's  Suggestion  Exercises 

Walter  Camp,  the  famous  developer  of  athletes  at  Yale,  offers 
some  advice  on  "How  to  be  fit"  which  is  useful  to  almost  every  man. 
He  says : 

Drink  without  eating  and  eat  without  drinking. 

Warm  feet  and  a  cool  head  need  no  physician. 

Dress  coolly  when  you  walk  and  warmly  when  you  ride. 

Your  nose,  not  your  mouth,  was  given  you  to  breathe 
through. 

Getting  mad  makes  black  marks  on  the  health. 

You'll  never  get  the  gout  from  walking. 

Tennis  up  to  the  thirties  but  golf  after  forty. 

Two  hours  of  outdoor  exercise  by  the  master  never  yet 
made  him  over-critical  of  the  cook. 

Too  many  drinks  at  the  nineteenth  hole  undo  all  the  good 
of  the  other  eighteen. 

The  best  way  to  use  the  Sunday  supplement  is  to  stick  it 
under  your  vest  while  you  walk  an  hour  against  the  wind 
and  then  come  home  and  read  it. 

Many  a  man  finds  too  late  that  his  motor  car  has  cost 
him  more  in  health  and  legs  than  it  has  in  tires  and  gaso- 
line. 

The  men  who  chase  the  golf  ball  don't  have  to  pursue  the 
doctor. 

Health  Culture  Chart 

The  rules  for  health  culture  of  the  present  chapter  have  been  con- 
veniently listed  as  standards  for  your  daily  observance.  Test  Chart  16 


3i8 


PERSONAL  DYNAMICS 


Health  Standards 

Sun. 

MON. 

TUE. 

Wed. 

Thu. 

Fri. 

Sat. 

Food 

Proper  amount 
Balanced  rations 

Eating  when  hungry 
Thorough  mastication 

Air 

Deep  breathing 
Being  outdoors 

Sleep 

Proper  amount 

Poison 

No  drugs,  alcohol,  or 
condiments 

Mouth  hygiene 
Water  drinking 
Thorough  evacuation 

Exercise 

Vigorous  outdoor  ex- 

ercise 

Setting-up  drill 
Posture 

Daily  Totals 

Week  Ending Total  Credits 

Test  Chart  i6— Health  Culture  Chart 


PHYSICAL  ENERGY  319 

proves  useful  as  a  definite  check  upon  each  observance  from  day 
to  day,  and  when  summarized  at  the  close  of  the  week  not  only  per- 
mits ready  comparison  with  other  weeks,  but  enables  you  to  survey 
your  habits  of  living  fairly  and  accurately. 

In  grading  yourself,  go  over  the  chart  at  the  close  of  each  day: 
(i)  credit  yourself  with  a  "i"  in  the  proper  space  opposite  each  of 
the  fourteen  items  you  have  conscientiously  observed;  (2)  put  a 
zero  opposite  the  items  violated  or  neglected;  and  (3)  credit  yourself 
with  a  "%,"  a  ">4,"  or  a  "^"  opposite  each  item  partially  observed. 
The  various  credits  when  added  indicate  your  total  for  the  day. 

Fourteen  credits  represent  a  perfect  score  for  the  day,  and  7  times 
14,  or  98,  the  correct  observance  of  the  health  rules  for  a  week. 
Since  two  credits  should  be  awarded  for  general  good  behavior  or 
the  performance  of  something  especially  meritorious  in  health  cul- 
ture, the  perfect  score  for  the  week  totals  100  points. 

Would  not  two  curves  which  show  graphically  both  daily  and 
weekly  health  credits  steadily  rising  as  time  goes  on  represent  about 
as  solid  an  achievement  in  personal  management  as  you  could  make? 


CHAPTER  XVII 

POWER  OF  WILL 

Will-power  is  the  tap  root  of  efficiency. 
— Charles  W.  Eliot 

A  Hard  Drive  Toward  the  Goal 

In  pushing  an  enterprise  to  its  full  completion,  tl^e  busi- 
ness man  encounters  a  considerable  amount  of  hard,  grind- 
ing work.  "Nearly  every  man  who  develops  a  new  idea 
works  it  up  to  a  point  where  it  looks  impossible,"  says  Thomas 
A.  Edison,  "and  then  he  gets  discouraged.  That's  not  the 
place  to  get  discouraged,  that's  the  place  to  get  interested. 
Hard  work  and  forever  sticking  to  a  thing  till  it's  done,  are 
the  main  things  an  inventor  needs. 

"I  can't  recall  a  single  problem  in  my  life,  of  any  sort," 
continued  Mr.  Edison,  "that  I  ever  started  on  that  I  didn't 
solve,  or  prove  that  I  couldn't  solve  it.  I  never  let  up  until 
I  had  done  everything  that  I  could  think  of,  no  matter  how 
absurd  it  might  seem  as  a  means  to  the  end  I  was  after.  Take 
the  problem  of  the  best  material  for  phonograph  records.  We 
started  out  using  wax.  That  was  too  soft.  Then  we  tried 
every  kind  of  wax  that  is  made,  and  every  possible  mix- 
ture of  wax  with  hardening  substances.  We  invented  new 
waxes.  There  was  something  objectionable  about  all  of  them. 
Then  somebody  said  something  about  soap.  So  we  tried  every 
kind  of  soap.  That  worked  better,  but  it  wasn't  what  we 
wanted.  I  had  seven  men  scouring  India,  China,  Africa, 
everywhere,  for  new  vegetable  bases  for  new  soaps.  After 
five  years  we  got  what  we  wanted,  and  worked  out  the  rec- 
ords that  are  in  use  today.    They  are  made  of  soap  too  hard 

320 


POWER  OF  WILL 


321 


to  wash  with  and  unHke  any  other  in  use,  but  soap  just  the 
same." 

This  incident  illustrates  very  well  Mr.  Edison's  remark 
that  genius  is  not  inspiration  but  perspiration,  and  his  rea- 
sons also  for  the  selection  of  persistence  as  the  inventor's  first 
essential.  Men,  once  they  have  decided  upon  a  course  of 
action,  must  urge  themselves  forward  with  a  certain  pitiless- 
ness ;  they  must  possess  driving  power. 

The  Business  of  Mind  Building 

The  struggle  for  business  existence,  in  the  last  analysis, 
decides  that  those  who  substitute  wishbone  for  backbone,  either 
in  themselves  or  in  subordinates,  shall  be  shunted  into  obscure 
places  and  their  positions  filled  by  persons  of  positive  qualities. 
Men  in  business  must  stand  for  something,  must  champion  it 
with  emphasis. 

"We  have  to  'sell'  every  man  with  whom  we  come  in  con- 
tact," declares  one  of  these  positive  contenders  in  the  business 
field,  E.  St.  Elmo  Lewis,  "whether  it  be  our  value  as  a  man  or 
the  brand  of  merchandise  we  offer,  or  the  value  of  the  service 
of  our  corporation,  or  even  our  opinion  of  himself." 

In  this  process  of  reaching  out  from  the  control  of  self  to 
the  direction  of  others,  mental  domination  is  essential;  the 
minds  of  these  others  must  be  impressed  and  success  compelled. 
The  projectors  of  the  larger  American  enterprises  and  the  rul- 
ing spirits  within  them  today  have  brought  to  this  task  a  certain 
ruggedness  of  personality,  an  imperious  mold  which  brooks 
no  opposition,  a  dynamic  force  which  in  the  old  days  ruled 
over  kingdoms  and  dukedoms  and  which  in  the  men  of  to- 
morrow will  spell  success  as  heretofore. 

Achievement  such  as  this  is  denied  the  man  who  flies  all  too 
readily  the  white  flag  of  surrender,  who  constantly  dreads  and 
nervously  prepares  for  things  which  never  will  occur;  the 
nonentity  who  has  capitulated  to  the  devil  of  fear.     Negative 


322 


PERSONAL  DYNAMICS 


qualities   inevitably  yield   negative   results,   positive   qualities 
alone  put  business  on  the  plus  side  of  the  ledger. 

The  business  of  rebuilding  one's  own  mind — ridding  it  of 
fear,  worry,  and  all  other  negative  qualities ;  cultivating  cour- 
age, optimism,  power  of  will,  mental  ascendancy;  directing  it 
continually  successward — is  one  of  the  most  practical  projects 
one  can  undertake. 

Bizarre  Schemes  for  Developing  the  Will 

Certain  *'mental  supremacy  builders"  have  hit  upon  the 
very  patent  fact  that  the  mind  admits  of  development,  and 
by  mystifying  the  process  with  such  vague  terms  as  "etheric 
anticipation,"  "psychic  magnetism,"  "electrifying  the  divine 
telepathic  manifestations,"  "ten  diamond  rules  of  self-power," 
and  "eleven  detailed  processes  for  developing  the  powerful 
eye,"  have  heralded  themselves  as  great  discoverers,  even  as 
"scientists." 

"This  Course,"  we  are  told  in  a  recent  prospectus,  *'abso- 
lutely  tells  you  how  to  generate  your  Mind  Force  and  nerve 
energy;  fine  course,  isn't  it?  Now  I  guess  that  you  begin  to 
see  that  it  is  not  one  of  the  ordinary  courses;  the  fact  is  it  is 
The  Course.  By  understanding  the  underlying  laws  which 
control  Unseen  Power  you  can  develop  your  irresistible  inner 
force  and  actualize  your  ideas  of  unlimited  prosperity.  .  .  . 
Fifteen  Dollars  down  or  by  three  monthly  payments  of  Five 
Dollars." 

Let  the  reader  be  assured  that  there  is  no  such  thing  as 
a  superadded  "will-power,"  a  sort  of  separate  faculty  which, 
as  one  of  these  persons  would  have  us  believe,  can  be  exer- 
cised into  amazing  strength  by  gazing  intently  at  knot  holes, 
pin  heads,  or  the  end  of  one's  finger.  "To  sum  it  all  up  in 
a  word,"  says  the  most  distinguished  psychologist  America 
has  yet  produced,  William  James,  "the  terminus  of  the  psy- 
chological process  in  volition,  the  point  to  which  the  will  is 


POWER  OF  WILL 


323 


directly  applied,  is  always  an  idea,"  and  the  essential  phenom- 
enon of  will,  he  further  states,  is  merely  the  effort  of  giving 
attention  to  this  idea.  Willing  is  thus  a  process  of  thinking, 
and  cannot  be  separated  from  it. 

What  Will-Power  Really  Is,  and  How  Cultivated 

This  very  matter  of  fact  conception  of  will  has  to  be  ac- 
cepted as  fundamental  in  all  sound  attempts  to  increase  its 
power. 

"The  key  to  success  in  the  line  of  all  mental  and  spiritual 
achievement,"  says  Professor  Dewey,  "is  control  of  the  at- 
tention." 

''Concentration  of  attention  is  the  basic  principle  which 
lies  at  the  very  foundation  of  our  every-day  work,"  says  Pro- 
fessor Seashore. 

*'The  habit  of  quick  and  concentrated  attention  is  the  most 
valuable  of  all  mental  qualities,"  says  President  Eliot,  "being 
the  main  source  of  the  productiveness  of  extraordinary  work- 
ers, and  in  less  degree  of  common  men  and  women.  In  all 
walks  of  life  the  efficient  man  is  the  thinking  man  who  has 
a  firm  will." 

To  the  reader  intent  on  mental  domination,  the  "attention" 
may  at  first  thought  appear  as  a  miserable  makeshift,  a  color- 
less shadow  of  the  iron  resolution  he  seeks.  How  can  it  make 
him  strong,  "red-blooded,"  of  inflexible  determination?  Be- 
cause ideas  are  dynamic.  When  Caesar  declared,  "I  am  linked 
to  my  determination  with  iron  bands;  it  cHngs  to  me  with 
the  tenacity  of  fate,"  we  see,  psychologically  speaking,  sim- 
ply a  mind  attending  to  a  certain  idea  which,  due  to  its  dy- 
namic nature,  tended  to  express  itself  in  action.  That  this 
action  was  of  the  history-making  sort  does  not  alter  the  es- 
sential nature  of  the  process.  Remembering  then  that  any 
such  idea  which  prevails  in  the  mind  normally  is  followed  by 
motor  effects,  be  these  the  wrinkling  of  the  brow  or  the  con- 


324 


PERSONAL  DYNAMICS 


quest  of  empire,  we  reach  the  heart  of  an  inquiry  into  will- 
power and  its  development  by  this  question :  By  what  process 
does  the  thought  of  any  given  object  come  to  prevail  stably 
in  the  mind  ? 

Fires  Which  Are  Damped 

Should  the  president  of  a  corporation  walk  through  his 
organization  accosting  the  first  dozen  of  his  subordinates  with 
this  blunt  question,  "What  feature  about  this  business  are  you 
permanently  and  vitally  interested  in?"  the  answer  if  truthfully 
given  would  be  illuminating  and,  it  may  be  added,  not  a  little 
disconcerting.  Several  would  agree  it  was  the  pay  check, 
others  would  confess  it  was  the  five  o'clock  signal,  some  would 
be  obliged  to  admit  that  they  could  think  of  nothing  in  par- 
ticular— all  in  all,  evidence  of  a  marked  deficiency  in  those  big 
vital  interests  through  which  a  man  forges  ahead  in  business. 

"I  remain  convinced,"  says  the  shrewd  Englishman,  Arnold 
Bennett,  who  observed  us  at  first  hand,  "that  the  majority  of 
decent  average  conscientious  men  of  business  (men  with  as- 
piration and  ideals)  do  not  as  a  rule  go  home  of  a  night  gen- 
uinely tired.  I  remain  convinced  that  they  put  not  as  much 
but  as  little  of  themselves  as  they  conscientiously  can  into  the 
earning  of  livelihood,  and  their  vocation  bores  rather  than  in- 
terests them." 

Here  is  the  fatal  defect  which  dampens  our  fire,  palsies 
our  energy,  short-circuits  the  will — lack  of  interest  in  what 
we  do. 

The  Ruling  Passion 

This  lack  of  interest  is  all  so  unnecessary.  Business  is 
the  greatest  of  §aia£S,  more  subtle  than  chess,  more  spectac- 
ular than  20I0,  more  thrilling  than  war,  more  substantial  than 
politics,  more  human  than  preaching^,  more  real  than  philoso- 
phizing,  more  enduring  than  creeds  which  have  made  fanatics 


POWER  OF  WILL  325 

of  men.  "If  a  man  does  not  find  romance  in  business,"  de- 
clares Andrew  Carnegie  with  much  truth,  *'it  is  not  the  fault 
of  the  business,  but  the  fault  of  the  man." 

Every  business  man  can  and  should  have  a  ruling  passion, 
a  luminous  conception  which  draws  him  on  and  makes  the 
humblest  duties  throb  with  a  profound  significance.  To 
Walter  Cottingham  it  is  the  ideal  01  buildmg  up  the  world's 
top-notch  sales  organization;  to  Clarence  M.  Wooley  the  vision 
of  homes  and  offices  everywhere  heated  by  Ideal  Radiators; 
to  Charles  Schwab  the  dream  of  steel  manufactured  better 
than  anywhere  else  at  Bethlehem;  to  Cyrus  McCormick  the 
dazzling  thought  which  flashed  upon  his  mind  years  since  when 
riding  on  horseback  through  a  wilderness  path,  "Perhaps  I 
may  make  a  million  dollars  from  this  reaper,"  a  thought  so 
enormous,  he  said  afterwards,  "that  it  seemed  a  dreamlike 
dwelling  in  the  clouds — so  remote,  so  unattainable,  so  exalted, 
so  visionary."  Whether  it  be  promotion,  financial  power,  a 
perfected  industrial  organization,  or  a  prominent  niche  in  the 
Hall  of  Fame,  matters  little;  what  does  count  tremendously 
is  that  every  man  should  put  his  whole  soul  into  something, 
should  nurture  a  ruling  passion  and  tremble  under  the  influx 
of  its  power. 

A  Mind  Made  Up,  and  Moving  Forward 

There  is  a  time  for  indecision,  it  is  true,  in  which  the  proj- 
ects of  a  creative  brain  are  passed  under  the  cold  scrutiny  of 
reason;  a  period  of  inner  questioning  during  which  the  search 
for  facts  goes  on.  When  these  more  strictly  intellectual  proc- 
esses have  been  completed,  however,  procrastination,  indeci- 
sion and  vacillation  must  give  way,  that  the  mind  brooding 
upon  the  selected  project  may  bring  it  forth  in  power. 

The  first  rule  for  building  power  of  will,  therefore,  is  se- 
lection.    This  one  thing  I  do. 

"If  you  only  care  enough  for  a  result,"   says  William 


^9^t>C»v 


326 


PERSONAL  DYNAMICS 


James,  "you  will  almost  certainly  attain  it.  If  you  wish  to 
be  rich,  you  will  be  rich;  if  you  wish  to  be  learned,  you  will 
be  learned;  if  you  wish  to  be  good,  you  will  be  good.  Only 
you  must,  then,  really  wish  these  things,  and  wish  them  with 
exclusiveness,  and  not  wish  at  the  same  time  a  hundred  other 
incompatible  things  just  as  strongly." 

The  Ruling  Passion  Supplemented 

A  ruling  passion,  such  as  has  just  been  described,  can  and 
will  bring  about  increase^  power.  Even  mediocrity  tem- 
porarily under  its  sway  has  wrought  mightily,  as  is  proved  by 
the  ability  of  every  crisis— fire,  train  wreck,  panic,  war,  riot — 
to  mold  heroes  from  material  which  'under  ordinary  circum- 
stances  is  sadly  lacking  in  hero  stuff. 

The  occasion  did  it,  we  say.  Well  and  good;  but  make 
every  business  day  a  great  occasion.  There  is,  literally  speak- 
ing, no  reason  why  executives  at  their  desks  should  not  toil 
as  Greek  gods.  The  occasion  is  as  worthy,  the  man  is  as  fit, 
and  if  only  the  stimulus  logically  inherent  in  the  surroundings 
be  applied,  it,  too,  would  be  as  adequate. 

Under  usual  conditions,  however,  this  stimulus  comes  in 
temporary  pulsations,  men  rising  only  momentarily  to  their 
full  mental  stature,  from  which  they  quickly  fall  away.  By 
what  methods  may  a  man  avoid  the  trough  and  maintain  him- 
self  more  consistently  upon  these  crests  of  achievement? 

Yourself  on  Record — Cottingham's  Campaign 

A  very  practical  method  for  the  attainment  of  these  ends 

is  the  setting  for  oneself  of  definite  tasks,  and  the  putting  of 

oneself  on  record  in  connection  with  them. 

In  the  spring  of  1914  the  tariff  and  currency  legislation 

had  rendered  the  business  outlook  uncertain,  if  not  dismal. 

That  able  sales  manager,  Walter  H.  Cottingha,m.  president  of 

the  Sherwin-Williams  Company,  made  up  his  mind  that  the 


POWER  OF  WILL 


327 


tide  was  about  to  turn,  and  issued  a  memorable  letter  to  all 
sales  representatives. 

"Forward  Again,"  was  his  slogan.  "The  signs  are  un- 
mistakable despite  the  pessimistic  forebodings  of  a  few,"  de- 
clared his  letter.  "This  means  that  business  men  everywhere 
should  place  their  shoulders  to  the  wheel  and  add  as  much 
impetus  as  possible  to  the  movement. 

"Business  is  booming  despite  reports  to  the  contrary,  and 
it  will  boom  more.  In  New  York  money  is  easier,  which 
points  out  that  people  are  regaining  confidence.  Every  man 
should  be  interested  and  do  what  he  can  to  make  1914  a  ban- 
ner year  in  business." 

The  Salesmen's  Response 

The  president's  letter,  a  message  of  optimism  and  reso- 
lution, was  the  first  shot  in  the  "Forward  Again  Campaign." 
This  was  followed  up  by  bulletins,  house  organs,  special  meet- 
ings, and  special  prizes.  Quotas  were  set,  a  ^'Forward  Again" 
creed  was  drawn  up,  and  application  blanks  bearing  this  dec- 
laration soon  began  to  pour  in  upon  the  home  office  of  the 
Sherwin-Williams  Company : 

February   ...    1914 
Mr.  Walter  H.  Cottingham,  President, 
The   Sherwin-Williams   Co., 
Cleveland,  Ohio. 

Dear  Mr.  Cottingham: 

I  hereby  make  application  for  active  membership  in  the 
"Forward  Again"  Campaign,  and  agree  to  do  my  part  in  liv- 
ing up  to  the  creed.  My  dues  will  be  paid  in  increased  busi- 
ness, and  I  wish  to  be  eligible  for  the  President's  certificate. 
I  shall  show  my  colors  by  wearing  the  Brighten  Up  Cru- 
sade Pennant. 

Name 

Office 

Territory 


328  PERSONAL  DYNAMICS 

The  men  thus  definitely  set  for  themselves  a  task,  and  a 
task  set  for  performance  becomes  in  turn  the  stimulus  for 
its  accomplishment. 

The  campaign  resulted  in  a  complete  victory.  "We  went 
up  against  the  biggest  February  business,  which  was  last  year, 
and  the  second  biggest  March  in  our  history,"  said  Mr.  Cot- 
tingham  in  summarizing  for  the  final  issue  of  Marching 
News  the  results  attained.  "Those  records  were  made  under 
favorable  business  conditions.  We  have  come  through  the 
campaign  with  all  records  for  February  and  March  in  the 
Trade  Sales  Department  completely  smashed  and  a  gain  to 
the  first  of  April." 

Keeping  One's  Goal  in  Sight 

The  executive  at  his  desk  may  set  quotas  for  himself  in 
various  ways — a  thousand-dollar  increase  in  sales  this  month, 
a  desk  cleared  off  by  ten  o'clock,  four  more  reports  checked 
over  before  luncheon.  The  man  who  plans  his  work  in  so 
doing  sets  quotas  for  himself,  which  is  an  additional  reason 
why  planning  speeds  production. 

Keeping  the  record,  quota,  or  schedule  plainly  in  sight  in- 


creases its  power  as  an  incentive.  Cecil  Rhodes,  the  empire 
builder  of  South  Africa,  in  his  office  constructed  a  large  map 
of  the  continent,  coloring  red  the  great  polygon  between  the 
Transvaal  and  the  Zambesi,  and  before  this  map  he  would 
stand  expatiating  upon  the  vastness  of  the  country  and,  run- 
ning his  finger  northward,  explaining  how  Africa  was  to  be 
linked  up  and  thrown  open  by  his  Cap£;:to-Cairo  telegraph 
and  railway — nerving  himself  in  this  way  for  his  far-reaching 
project. 

The  graph  showing  how  production  in  our  factory  has 
mounted  steadily  upward  for  seven  years,  the  series  of  items 
being  checked  off  on  our  day's  schedule,  the  well-filled  bas- 
ket labeled  "Finished  Work"  upon  which  our  eye  rests  with 


vvr 


POWER  OF  WILL  329 

satisfaction  as  the  afternoon  wears  on,  these  are  things  that 
tend  to  keep  the  desired  idea  dominant  in  the  mind. 

These  set  tasks,  this  being  on  record  before  others  and 
making  promises  to  ourselves  of  what  shall  be  done,  have  a 
result-getting  value.    They  stiffen  the  will. 

The  Atmosphere  of  Achievement 

The  man  who  accomplishes  is  like  a  dynamo,  vibrant  with 
his  major  purpose.  As  a  careful  husbandman,  he  shuns  an 
environment  which  would  dissipate  his  energy  and  strives  to 
build  up,  in  so  far  as  possible,  surroundings  of  helpful  nature, 
conducive  to  his  progress.  On  every  hand  are  mottoes,  poems, 
magazines,  books,  people  and  places  positive  in  their  impress 
and  stirring  inthe  onward  impulse  which  they  inspire.  To 
these  things  a  man  should  cleave  for  they  form  an  atmosphere 
of  achievement  which  moves  him  steadily  forward.  These 
Items  specified  can  be  supplemented  most  effectively  bv  per- 
sistent affirmation  made  by  the  person  himself. 

A  salesman,  *'one  of  the  best  I  ever  knew,"  says  Mr. 
Holman,  of  the  National  Cash  Register  Company,  who  re- 
lates the  incident,  prepared  the  following  "catechism,"  as  he 
called  it.  He  used  to  put  himself  through  it  every  morning 
before  starting  out.  Oftentimes  he  repeated  it  aloud  if  he 
had  the  opportunity.  The  questions  he  would  repeat  in  a 
quiet  tone,  but  the  answers  he  would  pronounce  with  all  the 
earnestness  of  which  he  was  capable. 

jlis  catechism  ran  somewhat  as  follows: 

Am  I  working  for  a  good  house?   Yes! 

Has  my  house  the  reputation  and  prestige  of  being  one  of 
the  best  in  its  line  ?    Yes  ! 

Have  we  made  hundreds  of  thousands  of  sales  like  the 
sales  I  am  going  to  make  today  ?  Yes  ! 

Have  we  an  enormous  body  of  satisfied  purchasers?  Yes! 

Am  I  selling  the  best  goods  of  the  kind  made  anywhere  in 
th^world.''    yes! 


330 


A 


PERSONAL  DYNAMICS 

Is  the  price  I  am  asking  a  fair  one  ?  Yes  1 

Do  the  men  I  am  going  to  call  on  need  the  article  I  am 
selling  ?    Yes  ! 

Do  they  realize  that  now?   No! 

Is  that  the  very  reason  I  am  going  to  call  on  them — ^be- 
cause at  present  they  don't  want  my  goods,  and  haven't 
yet  bought  them  ?    Yes  ! 

Am  I  justified  in  asking  a  prospect's  time  and  attention  to 
present  my  proposition?  By  All  the  Powers,  Yes! 

Am  I  going  to  get  into  the  interested  attention  of  every 
man  that  I  call  on,  if  there  is  any  earthly  way  to  do  it? 
Ye?'! 

/Km  I  going  to  sell  every  man  I  call  on  today?   You  Bet 
t  Am! 


/  The  spirit  of  such  positive  affirmaiioi^s  carried  throughout 
the  day  will  render  a  malTalmost  invincible. 
i  This  recipe  for  mental  rejuvenation  is  exceedingly  simple : 
Stoutly,  sincerely,  everlastingly  affirm  that  the  things  de- 
sired you  do  now  possess.  Such  affirmations  after  a  time  mold 
a  will  dynamic  in  its  positiveness. 

A  Man's  Opinion  of  Himself 

Needless  to  say,  the  efficacy  of  such  affirmations  as  have 
just  been  described  depends  in  large  measure  upon  whether  the 
affirmer  himself  believes  them  true.  If  he  does  not,  their 
power  in  rebuilding  his  mind  becomes  seriously  lessened;  if 
he  does,  we  are  faced  with  this  question — How  good  an  opinion 
of  himself  should  a  man  hold? 

The  man  of  merit  who  underrates  his  worth  puts  his  com- 
panions at  their  ease,  since  he  himself  is  so  modest  and  unas- 
suming, observed  Adam  Smith  long  since  in  his  Theory  of  the 
Moral  "Sentiments.  "If  those  companions,  however,"  warned 
Smith,  "have  not  both  more  discernment  and  more  generosity 
than  ordinary,  though  they  may  have  some  kindness  for  him 
they  have  seldom  much  respect ;  and  the  warmth  of  their  kind- 
ness is  very  seldom  sufficient  to  compensate  the  coldness  of 


POWER  OF  WILL 


331 


their  respect.  Men  of  no  more  than  ordinary  discernment 
never  ]rate  any  person  higher  than  he  appears  to  rate  himself. 
He  seems  himself  doubtful,  they  say,  wjiether  he  is  perfectly 
fit^r  such  a  situation  or  such  an  office,  and  immediately  give 
^e  preference  to"  some  imprudent  blockhead  who  entertains  no 
doubt  as  to  his  own  qualifications. 

"""  "Though  they  should  have  discernment,  yet,  if  they  want 
generosity,  they  never  fail  to  take  advantage  of  his  simplicity, 
and  to  assume  over  him  an  impertinent  superiority  which  they 
are  by  no  means  entitled  to.  His  good  nature  may  enable  him 
to  bear  this  for  some  time;  but  he  grows  weary  at  last,  and 
frequently  when  it  is  too  late,  and  when  the  rank  which  he 
ought  to  have  assumed  is  lost  irrecoverably,  and  usurped,  in 
consequence  of  his  own  backwardness,  by  some  of  his  more 
forward,  though  much  less  meritorious,  companions. 

'*A  man  of  this  character  must  have  been  fortunate  in  the 
early  choice  of  his  companions  if,  in  going  through  the  world, 
he  meets  always  with  fair  justice,  even  from  those  whom  he 
might  consider  his  best  friends.  A  youth,  too  unassuming  and 
too  unambitious,  is  frequently  followed  by  an  insignificant, 
complaining  and  discontented  old  age." 

Faith  in  Self 

The  conclusions  reached  by  the  father  of  political  economy, 
a  shrewd  Scotchman  who  had  studied  at  Oxford  and  traveled 
on  the  Continent,  when  taken  in  connection  with  conditions 
prevailing  now  in  the  United  States,  certainly  do  not  appear 
exaggerated.  Self-depreciation  is  not  enabling  its  possessors 
to  forge  ahead  ln"busihess,  whereas  its  opposite  has  advanced 
not  a  few  mediocres  to  positions  of  at  least  fair  responsibility. 

The  loud-mouthed  blatancy,  the  swagger  and  the  preposter- 
ous claims  which  often  pass  current  as  indicators  of  self-con- 
fidence, however,  are  spurious  coins.  Since  they  represent  no 
good-humored  inflexibility,  no  deep-seated  determination,  no 


332  PERSONAL  DYNAMICS 

belief  that  capacity  is  there  and  when  exerted  shall  prove  able, 
they  must  not  be  confounded  with  that  intensity  of  conviction 
which  men  attuned  to  achievement  have  cultivated  within 
themselves. 

"Trust  thyself,"  says  Ralph  Waldo  Emerson,  "every  heart 
vibrates  to  that  iron  string.  A  man  should  learn  to  detect 
and  watch  that  gleam  of  light  which  flashes  across  his  mind 
from  within,  more  than  the  luster  of  the  firmament  of  bards 
and  sages." 

The  man  who  would  accomplish  exceptional  things  should 
assume  the  part,  flood  his  being  with  positive  expectation, 
radiate  the  assurance  and  vigorous  affirmations  which  beget 
confidence  in  others.  "As  a  man  thinketh  in  his  heart,  so  is  he." 

Attitudes  of  Power 

In  walking  through  our  public  parks,  those  little  breathing 
spaces  in  the  great  city,  we  often  see  melancholy  figures,  bent 
over  in  moping  posture  on  the  bench,  conversing  in  dismal 
voice.  They  have  bent  themselves  into  that  miserable  position 
and  talk  in  woebegone  tones,  we  conclude,  because  they  feel 
so  discouraged.  But  is  this  correct  ?  May  it  not  be  precisely 
incorrect  ? 

"I  have  often  observed,"  says  Edmund  Burke,  "that,  on 
mimicking  the  looks  and  gestures  of  angry,  or  placid,  or  fright- 
ened, or  daring  men,  I  have  involuntarily  found  my  mind 
turned  to  that  passion  whose  appearance  I  strove  to  imitate; 
nay,  I  am  convinced  it  is  hard  to  avoid  it,  though  one  strove 
to  separate  the  passion  from  its  corresponding^  gestures." 

According  to  this  point  of  view,  the  bodily  manifestations 
cause  the  corresponding  emotions.  Run  from  a  bear  and  you 
feel  frightened;  look  brave  and  you  feel  brave ;  assume  the 
posture  of  grief  and  that  emotion  will  soon  steal  upon  you. 
In  other  words,  bodily  symptoms  are  the  real  content  of  emo- 
tions; assume  the  bodily  state  in  any  particular  circumstance 


I 


POWER  OF  WILL  333 

and  the  emotion  has  reahty;  refuse  it  bodily  expression  and 
the  strongest  gust  of  passion  is  as  a  pale  colorless  shadow. 

The  practical  implications  are  most  injportant  in  building 
power  of  will/  FearJ violent  outbursts 
tion^  /grief  yano'Tnelancholia  are  marks 
mimicable  to  positive  achievement.  Refuse  to  express  these 
emotions — -to  gaze  furtively  around,  hang  the  head,  speak  in 
plaintive  tones — and  they  die. 

"  Assiduously,  and  in  the  first  instance  cold-bloodedly,  go 
through  the  outward  expression  of  the  emotions  desired.  Let 
posture  and  walk  pxpress  self-reliance  in  every  lineament, 
speak  with  the  accent  of  courage,  assume  attitudes  of  power, 
and  power  in  reality  will  in  due  time  flow  in  upon  the  mind. 

Self-Discipline 

In  order  to  achieve  in  a  practical  way  whatever  program 
he  maps  out,  a  man  has  need  of  surrounding  himself  with  re- 
wards and  penalties.  Were  he  not  to  do  this,  other  persons 
would  be  obliged  to  attend  to  it  for  him,  or,  as  is  commonly 
the  case,  he  would  attain  only  that  mediocre  career  to  which 
human  nature,  freed  f rom  pressurel  normally  tends.  The  ambi- 
tious man  prefers  to  discipline  himself;  he  devises  rewards 
far  more  alluring  and  applies  the  lash  with  much  less  pity_ 
than  any  superior  would  dare  to  do^ 

With  the  project  set  clearly  before  himself,  he  cuts  off  all 
avenues  of  retreat.  The  doubt  and  uncertainties  which  from 
time  to  time  arise  and  which  if  unchecked  will  soon  produce 
failure  thoughts  in  rank  growth,  he  dismisses  with  scant  cour- 
tesy, or  when  necessary  with  stern  repression. 

Such  measures  guard  with  jealousy  that  most  precious 
possession  of  the  achieving  spirit,  inner  positiveness. 

Self-pity,  self-praise.  or_the  remarks  of  indulgent  friends 
afford  a  man  no  basis  for  the  discipline  of  himself;  and  ade_- 
quate  basis  depends  upon  standards,  and  rewards  and  penalties 


334  PERSONAL  DYNAMICS 

should  vary  with  the  degree  to  which  he  attains  these  standards. 
They  should  be  graded  according  to  the  excellence  of  the  at- 
tainment or  the  seriousness  of  the  lapse,  with  due  regard  to 
whether  or  not  this  be  the  first  occurrence. 

In  the  operation  of  such  a  system  of  rewards  and  penalties, 
certain  mischievous  fallacies  have  to  be  guarded  against.  Some 
of  these  are  as  follows:  (i)  The  surly,  greedy  insistence 
upon  unearned  enjoyments.  Yielding  but  encourages  still 
worse  greediness,  still  greater  surliness,  and  trains  into  tyrant 
power  the  contemptible  characteristic  which  insists  that  it 
shall  reap  where  it  has  not  sown;  (2)  The  plaint  that  since 
effort  has  been  carried  to  the  point  of  fatigue  rewards  should 
follow.  Results  attained,  whatever  they  may  be,  determine 
the  just  recompense.  In  a  given  case  effort  long  continued 
without  positive  attainments  may  merit  the  harshest  of  repri- 
mands; (3)  The  excuse  habit.  Were  plausible  excuses  to 
secure  unearned  gratifications  or  make  possible  escape  from 
merited  chastisements,  excuse  making  would  develop  into  a  fine 
art  and  the  mental  adroitness  which  otherwise  might  have 
carved  a  fortune  would  be  drawn  from  its  true  purpose  into 
paths  of  self-deception.  Therefore,  bestow  rewards  accu- 
rately, yet  with  gladness  and  the  spirit  of  celebration ;  penalize 
judiciously,  with  regret  but  firm  insistence;  in  all  things  act- 
ing as  thine  own  best  friend,  rule  thy  spirit  with  an  even 
hand. 

Will  Training  Summarized 

1.  Concentrate  upon  some  one  thing — have  a  ruling  pas- 
sion. 

Avoid  distracting  attention  with  too  many  projects. 

2.  Set  for  yourself  definite  tasks. 

Do  not  leave  loopholes  inviting  non-performance. 

3.  Keep   immersed   in   the   atmosphere  of   achievement. 


POWER  OF  WILL 


335 


Permit  minor  purposes  no  opportunity  to  create 
discords. 

4.  Persistently  affirm   the   attainment  of   that   which   is 
sought. 

Crowd  out  all  negative  thoughts. 

5.  Believe  in  yourself. 

Cease  self-depreciation. 

6.  Assume  attitudes  of  power. 

Avoid  slouching  postures  and  plaintive  tones. 

7.  Reward  and  punish  yourself  systematically. 

Do  not  weakly  upset   the   natural   law  of  conse- 
quences. 

The  program  which  this  chapter  has  presented  deals  with 
the  measures,  plain  and  simple,  which  enable  a  man  to  carry 
out  St.  Paul's  injunction,  "Be  ye  transformed  by  the  renewing 
of  your  mind  J'  In  practice,  these  measures  prove  themselves 
capable  of  maintaining  an  idea  dominant  in  the  mind,  and 
luminous  in  its  appeal.  Such  an  idea  in  itself  constitutes  power 
and  will  and  guarantees  its  possessor  a  high  order  of  positive 
selfhood. 


Exercises 

The  attainment  of  will  power  is  necessarily  a  matter  of  growth, 
but  the  program  which  has  been  outlined  enables  one  to  proceed  sys- 
tematically, at  a  rate  of  progress  which  can  be  surprisingly  rapid  if 
he  so  choose.  Let  us  utilize  Chart  17  as  a  convenient  means  for 
checking  growth  from  day  to  day,  and  week  after  weejc.  This  self- 
grading  chart  is  to  be  used  in  the  same  way  as  the  health  chart  shown 
jfTthe  preceding  chapter,  except  that  since  the  items  are  but  half  as 
numerous  the  credits  must  be  twice  as  large.  At  the  end  of  each  day : 
(I)  Credit  yourself  with  "2"  in  the  proper  space  opposite  each  item 
you  have  conscientiously  observed;  (2)  Put  a  zero  opposite  each  item 
neglected  or  violated;  and  (3)  Credit  yourself  with  "yi,"  "l,"  or 
"1J/2"  opposite  each  item  partially  observed. 


zz^ 


PERSONAL  DYNAMPCS 


Means  Employed 

Sun. 

MON. 

TUE. 

Wed. 

Thu. 

Fri. 

Sat. 

Concentrated  attention 

The  set  task 

Atmosphere  of  achieve- 
ment 

Persistent  affirmations 

Faith  in  self 

Attitudes  of  power 

Self-discipline 

Daily  Totals 

Week  Ending  ....  Total  Credits  . . 

Test  Chart  17— The  Culture  of  Will 


A  perfect  score  for  the  day  thus  totals  14  credits,  or  98  per  week. 
Add  two  extra  credits  for  general  good  behavior  or  some  especially 
meritorious  act  in  developing  your  will.  The  week's  perfect  score 
represents  100  credits. 

You  must  have  been  convinced  years  ago  of  the  importance  to  men 
in  business  of  a  strong  will,  and  oftentimes  since,  no  doubt,  you  have 
longed  to  make  such  a  will  your  own.  "Will  power,"  says  President 
Eliot,  "is  the  tap  root  of  efficiency."  Here  is  a  clear-cut  program, — 
something  that  will  get  results,  with  a  definite  system  of  checking 
progress  from  day  to  day. 


CHAPTER  XVIII 

MENTAL    ECONOMY 

It  is  one  of  the  characteristics  of  mental  economy  that 
efficiency  and  ease  seem  to  go  together. — Carl  Emil  Sea- 
shore. 

The  Art  of  Mental  Economy 

The  supplies  of  physical  and  mental  energy,  the  production 
of  which  was  discussed  in  the  two  preceding  chapters,  must, 
notwithstanding  their  abundance,  be  expended  with  judicious 
hand.  This  is  the  province  of  mental  economy;  it  concerns 
conservation,  the  utilization  of  the  physical  and  mental  re- 
sources with  superior  discrimination.  This,  of  course,  does 
not  mean  shirking,  nor  mental  sabotage,  but  the  handiness  of 
the  veteran  who  uses  every  inch  of  cover  in  the  charge,  while 
the  untrained  man  recklessly  exposes  himself. 

The  guiding  principles  of  mental  economy  are  illustrated 
in  this  study  of  four  Italian  typesetters  of  the  Niccolai  Print- 
ing House.  The  record  of  the  output  and  quality  of  their  work 
from  hour  to  hour  during  the  day  showed  the  following  results : 


Hours 

8-9 

9-10 

lO-II 

11-12 

12-2 

2-3 

3-4 

4-5 

Total  lines  set 

Total  errors   made.. 

..84 
..  17 

104 
10 

92 
18 

86 

28 

Rest 
Rest 

99 

5 

82 
22 

64 
30 

These  figures  are  significant  to  every  business  man.  As 
the  day  wore  along  the  amount  of  work  decreased  while  the 
errors  increased.  Both  in  quantity  and  quality,  working  ca- 
pacity rises  and  falls  from  hour  to  hour. 

337 


338  PERSONAL  DYNAMICS 

The  Tired  Person  Is  Poisoned 

These  fluctuations  in  working  capacity  have  been  experi- 
enced by  practically  everyone.  At  the  beginning  of  the  day 
we  have  a  feeling  of  freshness,  of  reserve  force  and  exuber- 
ance, and  we  attack  our  tasks  with  zest.  After  a  time  the 
feeling  of  freshness  with  which  we  started  disappears  and 
we  feel  dull  and  uncomfortable.  It  becomes  hard  to  concen- 
trate; the  work  before  us  no  longer  appears  inviting,  we  are 
easily  distracted,  and  upon  slight  provocation  the  mind  escapes 
its  imposed  task  and  indulges  in  aimless  wanderings.  The 
feet  become  cold,  the  head  hot.  Indifference  gives  way  to 
repugnance,  then  to  restlessness,  nervousness,  irritability,  and 
liability  to  passionate  outbursts. 

The  well-nourished  cells  with  which  we  began  the  day's 
work  have  been  destroyed;  their  energy  has  been  yielded  up 
and  impurities  now  clog  the  system.  Literally  and  accurately, 
the  tired  person  is  poisoned. 

A  Record  From  Life's  Firing  Line 

An  instrument  called  the  ergograph  shows  the  process 
graphically.  The  hand,  back  down,  is  strapped  upon  a  small 
table  and  to  the  end  of  one  finger  is  attached  a  cord  which, 
passing  over  a  pulley  at  the  edge  of  the  table,  ends  with  a 
small  hanging  weight.  Closing  the  finger  lifts  the  weight 
and  at  the  same  time  by  means  of  a  pointer  traces  a  line  on 
the  registering  apparatus.  The  more  vigorous  the  muscle 
action  the  longer  is  the  line  traced.  The  diagram  (see  Figure 
32),  therefore,  pictures  graphically  what  is  taking  place  in- 
side the  cells,  on  life's  firing  line.  The  muscles,  bending  en- 
ergetically to  their  task,  at  first  pull  the  pointer  over  wide 
distances,  but  the  length  of  their  contractions  gradually  dimin- 
ishes until  in  the  end,  thoroughly  fatigued,  choked  with  poi- 
sons, they  are  no  longer  able  to  raise  the  weight  and  the 
tracing  ceases. 


MENTAL   ECONOMY 


339 


Fatigue  and  Inefficiency 

A  very  important  law  of  exhaustion  now  comes  into  play. 
The  muscle,  thoroughly  fatigued,  requires  a  certain  period 
of  rest  before  coming  back  to  normal,  but  if  half-fatigued  it 
requires  not  one-half  this  amount  of  repose  but  only  one- 


Fig.  22.    A  Nerve  Test 

The  flexor  muscles,  upon  being  stimulated  by  an  electric  current  every  two  seconds, 
demonstrated  their  strength  by  lifting  a  small  weight,  with  which  was  connected  an 
apparatus  for  registering  the  length  of  the  lift.  No.  i  was  the  muscle's  record  made 
just  before  the  subject  took  an  examination.  No.  2,  written  immediately  after  the 
examination,  showed  "fag"  from  which,  according  to  the  No.  3,  written  two  hours 
after  the  examination,  the  subject  still  suffered.  (From  Mosso's  "Fatigue,"  by 
courtesy  of  G.  P.  Putnam's  Sons.) 

fourth.  That  is,  if  thirty  contractions  completely  exhaust  a 
muscle  and  a  two-hour  rest  period  restores  it,  the  injury  done 
by  fifteen  contractions  can  be  repaired  in  one-half  an  hour. 
"Work  done  by  a  muscle  already  fatigued  acts  on  that  muscle 
in  a  more  harmful  manner  than  a  heavier  task  performed 
under  normal  conditions." 

Work  done  when  fatigued  is  costly. 

This  costliness  is  highly  significant  when  considered  in  its 
relation  to  efficiency.  Fatigue  disintegrates  the  personality 
in  an  especially  insidious  way,  because  it  avoids  to  the  last 


340 


PERSONAL  DYNAMICS 


the  basic  Instincts,  such  as  greed,  hunger,  fear,  and  sex  appe- 
tite, but  the  later  and  finer  acquisitions — creative  ability,  sound 
judgment,  generosity,  self-control — it  attacks  first  of  all. 
Since  civilization  at  best  is  but  a  thin  veneer  laid  on  in  fear  and 
trembling,  it  is  easy  for  fatigue  to  unmask  the  savage  in  us. 
The  business  man  poisoned  by  fatigue  is  selfish,  ill-mannered, 
explosive,  as  tenacious  perhaps  over  a  two-cent  stamp  as  over 
a  $10,000  project.  The  storm  clouds  which  gather  on  his  face 
when  the  most  trivial  mishaps  occur  and  his  puttering  devotion 
to  essentials  and  non-essentials  alike  prove  that  poison  prod- 
ucts have  dulled  his  sense  of  balance  and  that  perspective  is 
gone. 

The  tired  man  drifts  naturally  towards  mefficiency.  The 
presence  of  fatigue  means  that  the  work  performed  under 
these  conditions  is  both  costly  in  energy  and  deficient  in  re- 
sults. It  behooves  us,  therefore,  now  that  we  are  employing 
the  methods  described  in  the  preceding  chapters  for  making  all 
possible  increases  in  our  energy  product,  to  adopt  in  the  ex- 
penditure of  this  energy  the  wise  policies  of  conservation  that 
will  next  be  described. 

Definite  Accomplishment 

The  action  of  a  dozen  inexperienced  track  laborers  in  try- 
ing to  move  a  heavy  rail  contains  a  moral  which  may  serve 
as  our  first  principle  of  mental  economy.  They  will  tug  and 
tug  at  it,  straining  and  expostulating  and  perspiring,  yet  the 
rail  does  not  budge.  But  observe  an  experienced  gang.  With 
a  hearty  "Heave  ho,  heave  ho!"  they  swing  the  rail  into  place. 
They  know  how. 

The  mental  worker  who  keeps  himself  under  a  non-inten- 
sive, continuous  strain  dribbles  away  fruitlessly  his  nervous 
force.     Such  is  dawdling,  the  bane  of  efficiency. 

Time  and  effort  are  required  to  prepare  the  materials 
needed  for  a  task  and  to  get  oneself  properly  warmed  up.     A 


MENTAL  ECONOMY  34I 

person  cannot  afford  to  put  himself  through  these  first  time- 
consuming  and  painful  steps  again  and  again;  changing  aim- 
lessly from  one  job  to  another  without  fully  completing  any 
is  an  inexcusable  waste.  When  once  under  way  the  efficient 
worker  energizes  intensively  and  pushes  the  task  hard  until  he 
has  some  positive  accomplishment  to  show.  Then  comes  rest, 
real  freedom,  for  the  thing  carried  to  completion  is,  as  it  were, 
placed  under  the  custody  of  a  ratchet  which  will  not  allow  it 
to  roll  back  and  crush  him. 

Concentrate;  aim  at  definite  accomplishment. 

Habits  and  Specialization 

When  this  policy  of  concentration  and  definite  accomplish- 
ment is  put  into  operation,  the  energy  stores  will  doubtless  be 
drawn  upon  vigorously  during  certain  periods.  This  is  as 
it  should  be;  accomplishment  demands  a  consumption  of 
power.  At  the  same  time,  however,  judicious  selection  ought 
to  be  made  among  the  energy  stores  for  those  best  suited  to  the 
requirements  of  the  task  at  hand.  The  problem  is  analogous 
to  the  choosing  of  employees. 

When  a  group  of  young  women  apply  for  work  at  the  em- 
ployment department,  the  skilled  manager,  while  he  may  en- 
gage all  of  them,  places  them  with  a  sureness  born  of  long 
experience.  The  stolid-faced  girl  with  unkempt  hair  and  skirt 
which  does  not  meet  the  waist  by  two  inches  or  more  he  assigns 
to  a  machinery  room  where  the  work  is  greasy,  while  the  re- 
fined and  sensitive  girl  is  placed  in  an  inspection  department 
where  the  work  is  of  a  higher  character  and  conditions  are 
very  different.  Such  placing,  the  manager  knows,  utilizes  to 
best  effect  the  characteristics  and  the  different  grades  of  em- 
ployee ability. 

In  our  mental  make-up  there  are  the  stolid  workers,  those 
stable  reactions  imbedded  in  the  subconscious — old,  fixed,  easy 
and  inexpensive ;  and  the  sensitive  workers,  those  highly  plastic 


342  PERSONAL  DYNAMICS 

reactions  held  in  consciousness — variable,  difficult  and  expen- 
sive^ 

Use  the  simpler  forms  of  mental  energy,  conserve  the 
higher. 

Why  does  one  tire  so  quickly  in  doing  a  task  the  first 
time?  Because  it  has  to  be  done  by  the  sensitive  workers, 
higher  nerve  centers — the  "general  manager,"  to  use  the 
phrase  of  Chapter  X,  and  their  effort  is  taxing.  By  and  by, 
however,  under  repetition,  this  once  new  task  will  come  easy 
because  made  automatic,  that  is,  developed  into  a  habit  pre- 
sided over  by  the  lower  nerve  centers. 

The  nature  of  the  nervous  system  itself,  therefore,  em- 
phasizes the  need  for  specialization.  The  amateur  in  any 
occupation  necessarily  works  under  conditions  of  strain,  and 
if  by  shifting  aimlessly  from  occupation  to  occupation  he 
continues  this  strain,  he  never  rises  to  the  heights  of  accom- 
plishment so  easily  reached  and  maintained  by  the  specialist. 
The  latter,  simply  because  he  does  specialize,  lays  broad  and 
deep  the  foundations  of  his  ability  in  the  lower  mental  levels 
— old,  stable,  economic,  graceful;  these  constitute  his  reserve, 
always  at  his  command,  and  they  provide  him  that  splf-confi- 
dence  and  drive  which  lead  to  achievement. 

Introspection  versus  Objectivity 

Whatever  be  the  amount  and  particular  grades  of  nervous 
energy  requisitioned  from  our  stores,  the  requirements  of  men- 
tal economy  always  dictate  that  these  be  expended  upon  work. 
Energy  when  exerted  should  yield  positive  accomplishment. 
This  matter-of-fact  policy,  however,  is  overridden  when  the 
mind,  a  victim  of  unhealthy  self-analysis  and  brooding  intro- 
spection, turns  like  a  faulty  machine  inward  upon  itself  and 
wears  its  mechanism  and  power  fruitlessly  away.  According 
to  the  term  in  popular  use,  the  person  worries. 

The  causes  advanced  by  the  worrying  person  in  attempting 


MENTAL  ECONOMY 


343 


to  account  for  a  particular  depression  appear  to  him  very  real. 
He  has  eaten  some  food  which  he  fears  will  not  agree  with 
him,  his  employer  has  treated  him  most  unjustly  in  placing  his 
desk  in  a  less  favored  position  where  possibly  there  are  drafts, 
a  former  acquaintance  offends  him  by  not  returning  the  nod  of 
recognition  given  him  in  the  crowd  this  morning,  his  project 
over  which  much  labor  has  been  expended  cannot  as  yet  be  con- 
sidered definitely  successful,  a  stenographer — "the  foolish 
thing" — misdirected  one  of  his  letters  and  it  now  returns  to  his 
desk  five  days  late.  Does  the  matter  concern  health,  wealth, 
happiness,  social  position,  efficiency?  It  is  all  the  same. 
Worry  tortures  its  victim  incessantly,  finally  resorting  to  the 
most  insidious  torture  of  them  all  by  worrying  him  over  his 
worries. 

The  unhealthy  mind  continually  fashions  mountains  out  of 
mole-hills. 

Worry,  the  Policy  of  a  Spendthrift 

The  basis  for  most  worries,  when  the  matter  has  received 
a  careful  sifting,  is  decidedly  trivial  compared  to  the  beliefs 
entertained  by  the  person  harassed  and  the  damage  which 
these  overwrought  beliefs  have  entailed  upon  his  nervous 
system.  Worry,  therefore,  constitutes  the  policy  of  a  spend- 
thrift. It  is  able  to  drain  away  the  largest  stores  of  nervous 
energy  and  when  incessant,  even  though  mild,  it  is  more  ex- 
hausting than  occasional  fits  of  intense  anger,  fright,  or  over- 
excitement.  Under  the  more  serious  condition  termed  mel- 
ancholy, the  victim  tortures  himself  with  painful  emotions 
until  the  normal  processes  of  thought  are  inhibited  and  his 
mind  is  possessed  with  fixed  ideas  of  bankruptcy,  strikes,  guilt, 
or  what  not.  These  ideas,  along  with  all  sorts  of  old  regrets, 
checked  ambitions,  unrealized  aspirations,  self -distrusts,  and 
the  sense  that  things  in  general  are  not  as  they  should  be  with 
him,  represent  useless  baggage. 


344  PERSONAL  DYNAMICS 

*'In  the  healthy-minded,"  says  William  James,  "there  are 
no  fears  or  shames  to  discover;  and  the  sensations  that  pour 
in  from  the  organism  only  help  to  swell  the  general  vital 
sense  of  security  and  readiness  for  anything  that  may  turn 

up" 

Look  outward ;  cultivate  objectivity. 

This  slogan  serves  as  health's  alarm  clock  to  the  person  who 
spends  over-much  time  rummaging  about  on  the  inside.  The 
task  is  on  the  outside ;  cleave  to  it. 

Zones  of  Low  Fatigue 

The  person  alive  to  present  opportunities,  whose  mind, 
when  turned  inward  for  purposes  of  making  whatever  prep- 
arations are  required  for  an  effective  utilization  of  these  op- 
portunities, quickly  swings  back  upon  objective  things,  expends 
himself  productively.  He  has  eliminated  a  most  serious 
waste,  and  by  so  doing  has  cut  down  appreciably  the  fatigue 
caused  by  his  task.  A  still  further  reduction  of  this  fatigue 
produced  by  work  is  next  to  be  considered. 

Every  effort  put  forth  has  its  price  in  terms  of  fatigue; 
yet  this  by  no  means  implies  that  the  price  is  necessarily  always 
the  same  nor  that  the  business  man,  determined  to  put  forth 
every  possible  effort  even  though  it  does  cost  in  terms  of 
fatigue,  need  be  an  imprudent  bargainer.  Should  he  wish  to 
pay  no  exorbitant  price  he  will  find  nature  quite  ready  to  deal 
fairly  with  him. 

Co-operating  effectively  with  nature  in  this  respect  requires 
observance  of  the  principle  mentioned  on  a  previous  page  that 
work  done  when  fatigued  is  costly.  Conditions  of  steadily  in- 
creasing fatigue  have  as  their  correlative,  charges  which  grad- 
ually become  more  and  more  costly  until  after  a  certain  point 
is  reached  the  price  should  be  regarded  as  prohibitive.  The 
man  who  has  the  foresight  to  consider  his  working  capacity  in 
terms  of  tomorrow,  next  week,  or  even  twenty  years  hence. 


MENTAL  ECONOMY 


345 


refuses  to  push  himself  into  these  costly  fatigue  zones.  Unless 
it  is  a  real  emergency  of  some  sort,  the  results  attained  do 
not  justify  the  price  paid. 

The  sovereign  method  for  keeping  oneself  in  the  low  cost 
zones  is  recreation.  The  word  itself  implies  as  much,  re- 
creation. 

The  Means  for  Recreation 

Body  and  mind  are  undergoing  constantly  a  tearing  down 
process,  metabolism,  and  a  building  up  process,  anabolism. 
During  severe  effort  the  tissues  are  destroyed  faster  than  built 
up;  during  periods  of  recreation  they  are  built  up  faster  than 
destroyed.  The  ideal  condition  is  one  in  which  a  delicate 
balance  is  preserved. 

The  concrete  means  for  carrying  out  this  ideal  in  a  practi- 
cal way  are  exceedingly  numerous  and  so  varied  that  any  busi- 
ness man  surely  can  satisfy  his  needs  adequately.  Each  of  the 
following  has  its  enthusiastic  devotees : 

Walking  Polo 

Running  Bicycling 

Jumping  Motoring 

Handball  Yachting 

Gardening  Fishing 

Farming  Volleyball 

Wood-chopping  Shooting 

Golf  Quoits 

Tennis  Hunting 

Cricket  Boxing 

Baseball  Wrestling 

Horseback-riding  Calisthenics 

Rowing  Ice-boating 

Swimming  Weight-pulling 

Skating  Military  drill 


346  PERSONAL  DYNAMICS 

Usually  these  forms  of  recreation  are  thought  of  in  connec- 
tion with  a  vacation,  and  it  is  true  that  this  period  does  afford 
an  opportune  time  for  their  exercise.  Years  ago  the  vacation 
was  a  subject  of  derision,  as,  in  fact,  it  still  continues  to  be 
among  a  few  business  men.  Yet  its  hold  upon  people  of  all 
callings  has  never  been  more  firmly  established  than  at  present, 
and  the  practice  of  our  leading  executives  is  to  spend  longer 
periods  of  time  in  this  way  than  formerly.  Doubtless  it  would 
express  their  view  more  accurately  to  say  they  prefer  to  invest 
more  time  this  way  since  the  change  of  occupation  and  the  di- 
version of  interest  into  new  channels  afforded  by  the  vacation 
increases  the  total  results  they  attain  during  the  year. 

In  anticipation  of  a  vacation,  however,  and  in  view  of  then 
setting  their  mental  houses  in  order,  not  a  few  business  men 
work  desperately  for  eleven  months  with  scant  regard  to  their 
physical  and  mental  upkeep.  Such  a  policy  is  shortsighted. 
Under  a  long  period  of  stress  and  strain  the  physical  machine 
toils  in  the  costly  fatigue  zones  and  becomes  seriously  run 
down.  In  consequence,  too  great  a  burden  is  placed  upon  the 
vacation  because  the  process  of  repair  under  these  conditions 
is  rendered  both  slow  and  wasteful. 

The  general  rule  that  work  done  when  fatigued  is  costly 
indicates  that  the  time  which  has  been  allotted  heretofore 
to  a  single  vacation  possesses  increased  effectiveness  when 
divided  into  several  shorter  periods.  Men  of  affairs  are 
steadily  coming  to  see  the  wisdom  of  at  least  one  vacation  of 
reasonable  length  during  the  year  and  several  short  ones,  the 
latter  oftentimes  of  the  week-end  sort  which  has  attained  a 
deserved  popularity. 

"Vacations  Daily" 

The  benefits  which  come  from  frequent  rest  periods  may 
well  cause  a  person  to  consider  how  he  may  insert  rest  periods 
into  his  every  day.     Why  wait  even  for  the  week-end?     In 


MENTAL   ECONOMY 


347 


fact,  part  of  the  plan  here  proposed  necessarily  is  in  operation 
now  and  the  project  as  a  whole  is  entirely  feasible,  as  we  shall 
indicate. 

The  most  refreshing  of  all  rest  periods  as  well  as  the  most 
universal  is  sleep.  Since  it  holds  the  individual  in  an  inactive 
state,  his  muscles  relaxed  and  mental  activity  sunken  deep  into 
the  realm  of  the  subconscious,  it  accelerates  most  favorably  the 
processes  of  rebuilding. 

The  length  of  time  which  ought  to  be  devoted  to  sleep  has 
long  been  a  subject  for  comment.  Frederick  the  Great,  Na- 
poleon, John  Wesley,  and  the  Duke  of  Wellington,  to  cite  four 
of  several  notable  instances,  were  able  to  refresh  themselves 
completely  with  four  hours'  sleep.  Shall  the  business  man  at- 
tempt to  follow  their  example? 

Thomas  A.  Edison  is  a  business  man  who  does  this.  In- 
deed, he  considerably  lessens  this  four  hour  period  upon  oc- 
casion. At  the  age  of  sixty-seven  he  once  worked  twenty- 
two  hours  daily  for  forty  consecutive  days,  but  in  an  answer 
given  just  after  undergoing  this  ordeal  he  explained  to  his 
questioner  a  matter  which  usually  is  overlooked  entirely  in  the 
discussions  concerning  the  number  of  sleeping  hours  required, 
namely,  the  conditions  under  which  one  sleeps. 

"When  I  lie  down,"  said  Mr.  Edison,  "I  go  to  sleep  almost 
instantly — within  a  minute.  It  seems  as  if  when  I  lie  down 
my  brain  is  automatically  turned  off.  I  have  tried,  sometimes, 
to  think  in  bed,  only  to  discover  that  I  could  not  do  it.  I  fall 
asleep.  And,  when  I  sleep,  I  do  not  toss  and  dream  as  do  those 
people  who  eat  too  much — I  am  dead  to  the  world  until  it  is 
time  to  get  up.  And,  when  I  wake  up,  I  do  not  have  to  wait 
until  I  have  washed  my  face  with  cold  water  to  feel  that  I  am 
awake — I  am  wide  awake  and  ready  for  business  as  soon  as  I 
open  my  eyes. 

"But  the  real  reason  why  I  can  do  with  so  Httle  sleep  is  that 
a  healthy  man  requires  little  sleep." 


348  PERSONAL  DYNAMICS 

The  number  of  hours  a  person  should  sleep  depends  upon 
the  amount  of  fatigue  within  his  body  to  be  cleared  away  and 
the  rapidity  with  which  his  system  works  at  this  task  of  recu- 
peration. There  is  no  set  rule  which  will  hold  for  everybody. 
The  vigorous  individual  who  comes  to  bed  with  a  body  only 
moderately  fatigued  and  with  strong  powers  of  recuperation 
may  get  along  very  well  with  four  hours.  The  neurasthenic 
may  bring  his  body  to  bed  so  poison  laden  and  possess  such 
limited  powers  of  recuperation  that  ten,  even  twelve,  hours 
are  none  too  much. 

Since  undersleeping  leaves  the  system  still  poisoned  and 
oversleeping  cannot  possibly  have  a  weakening  effect,  the  gen- 
eral rule  is  to  sleep  as  much  as  you  can.  In  applying  this  rule, 
however,  careful  attention  should  be  given  the  conditions  of 
the  sleep  itself.  As  these  conditions  are  improved  the  length 
of  time  required  can  steadily  be  cut  down.  This  method  is  a 
practical  one  for  adding  an  hour  or  two  daily  to  our  result- 
getting  time. 

Sleeplessness  and  Its  Cure 

The  rule  of  "sleep  all  you  can"  is  to  many  men,  unfortu- 
nately, hard  to  follow.  Apparently  they  cannot  sleep  as  many 
hours  as  they  should  in  order  to  feel  fully  refreshed.  A  few, 
the  more  serious  cases,  are  victims  of  insomnia,  men  who  face 
the  day  with  listlessness  and  to  whose  mind  the  thought  of  the 
coming  night  only  adds  deeper  depression. 

In  good  health,  moderate  fatigue  and  the  objective  mind, 
sleeplessness  has  three  excellent  antidotes.  If  the  sufferer 
claims  that  this  suggested  remedy  merely  puts  him  inside  a 
vicious  circle,  where  the  lack  of  health  and  objective-minded- 
ness,  for  example,  prevent  sleep,  and  lack  of  sleep  makes  im- 
possible health  and  objectivity,  it  may  also  be  pointed  out  that 
an  improvement  in  any  one  of  these  respects  serves  him  as  a 
vantage  ground  from  which  to  advance  himself  in  another 


MENTAL   ECONOMY  349 

direction.  One  may  mount  by  friendly  circles  as  well  as 
descend  by  vicious  circles. 

Concrete  measures  which  may  be  commended  are  these : 
keep  the  digestion  in  good  order,  take  light  exercise  before  re- 
tiring, bathe  the  feet  for  ten  minutes  or  so  in  very  hot  water, 
assume  a  comfortable  position  in  bed,  close  the  eyes  gently, 
and  become  so  lazily  relaxed  that  falling  asleep  is  about  all 
the  mind  cares  to  do.  In  so  far  as  is  possible  without  being 
too  energetic  about  it,  avoid  worry,  excitement,  overstrain, 
grief,  emotional  shock,  remorse,  fixed  ideas  of  one  kind  or 
another,  and  morbid  fear,  especially  the  auto-suggestion  that 
sleep  is  impossible. 

This  latter,  the  auto-suggestion  that  sleep  is  impossible, 
haunts  many  people,  as  Dr.  McComb  points  out.  "They  are 
obsessed  with  the  fear  of  not  sleeping.  They  have  had  ex- 
perience of  bad  nights,  and,  anticipating  that  the  coming  night 
will  be  like  the  others,  they  spend  their  time  thinking  of  the 
terrible  consequences  which  will  result  from  failure  to  sleep. 
That  is,  of  course,  all  wrong.  Let  the  sufferer  dissipate  this 
evil  fancy  by  the  reflection  that  few  nights'  bad  sleep  is  pro- 
ductive of  no  great  injury;  that  if  only  nature  be  permitted  a 
change,  the  instinct  of  sleep  will  reassert  itself.  He  will  do 
well,  then,  to  approach  his  time  of  rest  with  an  air  of  indif- 
ference, of  absolute  trust  in  the  processes  of  nature.  Let  him 
say  to  himself :  'Whether  I  sleep  or  not  tonight  is  a  matter  of 
no  great  moment.     Why  then  worry  ?'  " 

The  Gospel  of  Relaxation 

A  refreshing  sleep  constitutes  but  the  first  step  in  our  pro- 
gram of  "vacations  daily."  The  second  step,  a  matter  like- 
wise of  decided  efficacy  in  keeping  a  person  safely  within  the 
low  fatigue  zone,  we  shall  refer  to  as  relaxation. 

A  Scottish  physician,  the  most  eminent  nerve  specialist  in 
his  country,  Dr.  Clouston,  upon  visiting  this  country  many 


350 


PERSONAL  DYNAMICS 


years  since  gave  this  as  his  beHef.  "You  Americans,"  he  said, 
"wear  too  much  expression  on  your  faces.  You  are  living  Hke 
an  army  with  all  its  reserves  engaged  in  action.  The  duller 
countenances  of  the  British  population  betoken  a  better  scheme 
of  life.  They  suggest  stores  of  reserve  nervous  force  to  fall 
back  upon,  if  any  occasion  should  arise  that  requires  it.  This 
inexcitability,  this  presence  at  all  times  of  power  not  used,  I 
regard,"  continued  Dr.  Clouston,  "as  the  great  safeguard  of 
our  British  people.  The  other  thing  in  you  gives  me  a  sense 
of  insecurity,  and  you  ought  somehow  to  tone  yourselves  down. 
You  really  do  carry  too  much  expression,  you  take  too  intense- 
ly the  trivial  moments  of  life." 

The  overwrought  physiques  observed  by  the  doctor,  whose 
testimony  in  this  respect  admits  of  corroboration  almost  every- 
where in  business,  induce  a  similarly  overwrought  condition 
of  the  mind.    What  are  the  effects  upon  mental  economy  ? 


Conservation  versus  Waste 

Business  man  A  and  business  man  B,  bound  for  their 
respective  offices  in  the  city,  enter  the  suburban  station  at  the 
same  time  Monday  morning.  The  train,  they  discover,  is  to 
be  ten  minutes  late.  A  in  ill  mood  proceeds  to  walk  up  and 
down  the  platform,  pulls  out  his  watch  every  minute  or  two, 
consults  his  time-table,  drums  upon  the  platform  with  his 
cane,  and  glances  anxiously  up  the  track.  B  walks  up  and 
down  the  platform  also  but  slowly  and  serenely,  with  evident 
relish  over  this  opportunity  to  lengthen  by  a  few  minutes  his 
morning  constitutional  and  apparently  oblivious  to  the  fact 
that  there  are  such  things  as  trains  to  be  caught.  Yet  he 
leaves  that  station  quite  as  promptly  as  A. 

Once  on  the  train,  A  sits  on  the  edge  of  the  seat,  his  body 
rigidly  alert  to  every  motion  of  the  car  and  his  mind  ready 
to  chafe  at  any  sign  of  fresh  delay.  He  tears  through  the 
morning  paper,  consults  both  time-table  and  watch  incessantly, 


MENTAL   ECONOMY 


351 


and  vows  vengeance  upon  the  railroad  company  which  dares 
to  cause  him  such  annoyance  as  this  particular,  inexcusable 
lateness;  he  will  move  away  and  give  them  no  further  patron- 
age. B  sinks  into  his  seat;  he  conserves  his  energy  through 
relaxation.    Yet  both  men  leave  the  city  station  together. 

Conservation  versus  Waste — Results 

The  two  executives  are  soon  dispatching  the  day's  work, 
hour  after  hour.  The  time  at  length  arrives  when  A,  finding 
himself  completely  exhausted  and  bearing  in  mind  the  need 
for  exercise,  hurries  over  to  a  gymnasium.  He  will  put  his 
muscles  through  their  required  program  in  short  order.  This 
to  his  mind  represents  exercise  although,  as  Dr.  Woods  Hutch- 
inson well  points  out,  "what  the  average  business  man  or  office 
worker  is  doing,  when  he  rushes  through  his  gymnasium 
cyclone  fashion,  chins  himself  fifteen  or  twenty  times,  jumps 
at  the  parallel  bars,  or  swings  on  the  horizontal  bar  for  five 
minutes,  smashes  the  medicine  ball  back  and  forth,  hammers 
himself  purple  in  the  face  on  the  punching  bag,  runs  ten  times 
around  the  racing  gallery,  and  takes  a  hot  shower  bath  and  a 
rub-down  all  in  eighteen  and  a  half  minutes,  is  simply  loading 
himself  to  the  bursting  point  with  fatigue  poisons  of  muscular 
effort  and  allowing  no  time  for  their  elimination.  He  comes 
to  the  gymnasium  from  his  office  with  his  blood  loaded  with 
the  fatigue  toxins  of  brain  work.  He  adds  to  them  a  greater 
amount  of  the  muscle  fatigue  poisons  and  goes  on  his 
way  rejoicing,  both  barrels  loaded  with  carbon  dioxide  instead 
of  one  as  before."  , 

This  represents  A  as  he  takes  the  train  home.  B  has  pre- 
ceded him  by  two  hours,  his  day's  work  nicely  cleared  away 
and  himself  primed  for  the  golf  links. 

A's  wife  that  night  is  concerned  over  his  wan  appearance 
and  wonders  if  some  of  that  new  remedy  advertised  so  exten- 
sively under  a  most  impressive  name  is  not  worth  a  trial  in 


352  PERSONAL  DYNAMICS 

order  to  improve  his  run-down  condition.  A  himself  admits 
he  is  overworking  and  that  business  is  a  hard  life.  B's  wife 
when  she  is  about  to  call  her  husband  to  dinner  discovers  him 
blissfully  taking  a  nap. 

Which  clears  away  more  tasks  daily  with  fewer  mis- 
takes? Which  will  live  longer  and  more  happily  because 
more  efficiently? 

"Vacations  daily"  afiford  a  simple  means  for  keeping  in  the 
low  cost  zones  of  fatigue  which  each  business  man  has  almost 
constant  opportunity  to  utilize.  When  obliged  to  wait,  relax. 
When  riding  on  a  train  or  trolley  car,  relax.  When  sitting  in 
the  office  chair,  relax.  When  at  luncheon  or  at  dinner,  relax. 
Eliminate  from  the  muscular  system  all  restless  and  unneces- 
sary movements,  keep  the  brow  unruffled,  the  respiration 
regular  and  full. 

Relax;  reach  the  mind  through  the  body. 

Repose  as  an  Ideal 

The  average  American,  however,  is  rather  proud  than 
otherwise  of  his  overwrought  state.  His  ideal  is  one  of  hustle, 
"pep,"  hurry,  "get  through  in  spite  of  the  consequences,"  and 
to  his  way  of  thinking,  eagerness,  breathlessness,  the  bottled- 
lightning  expression,  are  marks  of  efficiency.  The  exact  re- 
verse is  the  case. 

"It  is  your  relaxed  and  easy  worker,"  says  William  James, 
"who  is  in  no  hurry,  and  quite  thoughtless  most  of  the  while 
of  consequences,  who  is  your  efficient  worker ;  and  tension  and 
anxiety,  and  present  and  future,  all  mixed  up  together  in  our 
minds  at  once,  are  the  surest  drags  upon  steady  progress  and 
hindrances  to  our  success." 

With  a  rough  and  ready  zest  our  fathers  pioneered  a  vast 
new  country  and  exploited  its  then  apparently  unlimited  re- 
sources with  a  lavishness  which  could  not  possibly  continue 
for  all  time.     We  have  read  the  handwriting  upon  the  wall  and 


MENTAL   ECONOMY  353 

already  are  addressing  ourselves  to  the  conservation  of  our 
natural  resources. 

With  a  lavishness  rivaling  the  treatment  accorded  our  sup- 
plies of  iron,  coal,  lumber,  and  fertile  soil  our  people  have  here- 
tofore expended  their  resources  of  brain  and  muscle.  This 
also  must  cease  if  we  are  to  endure  as  a  virile  people.  We 
must  reshape  our  ideals  and,  instead  of  admiring  restlessness, 
over-anxiety  and  breathless  rush,  become  living  examples  of 
harmony,  reserve,  and  repose. 

The  Elimination  of  Distractions 

In  the  making  of  repose  an  ideal  in  business,  the  executive 
can  proceed  along  certain  definite  lines,  none  of  which,  very 
probably,  will  impress  him  as  containing  any  startling  possi- 
bilities but  all  of  which  combined  are  able  to  secure  him  results 
of  decided  significance. 

The  elimination  of  distractions  is  one  of  these  means. 
Many  executives,  particularly  those  in  subordinate  positions, 
suffer  far  more  than  they  realize  in  this  way.  The  room  may 
be  noisy.  It  is  possible  of  course  to  hold  the  mind  to  its  own 
business  while  various  other  things  are  going  on,  but  it  is  inevi- 
tably at  the  cost  of  some  strain.  The  wear  and  tear  of  the 
noisy  city  life  on  every  inhabitant  is  a  fact  realized  when  a 
person  gets  out  into  the  country;  the  quiet  often  brings  an 
actual  shock  to  an  urbanite's  nerves. 

The  head  of  the  welfare  department  of  one  of  the  largest 
concerns  of  the  country,  a  man  who  is  an  authority  on  the  edu- 
cation and  care  of  employees,  has  two  particularly  noisy  type- 
writers, one  on  each  side  of  his  desk.  He  keeps  one  or  both 
of  them  busy  most  of  the  time  even  when  conversing  with  a 
visitor.  He  himself  is  a  strong-voiced,  robust  individual  and 
apparently  has  never  considered  the  wasteful  nervous  effort 
exerted  by  himself  and  his  visitor  in  overcoming  the  racket 
of  the  machines. 


354  PERSONAL  DYNAMICS 

Then  there  are  eye  distractions.  A  certain  large  organiza- 
tion has  adopted  the  dubious  poHcy  of  massing  its  forces  in  a 
few  huge  rooms,  the  department  heads  with  the  rest.  The 
head  of  one  of  the  departments  has  contrived,  however,  to 
turn  his  desk,  which  is  built  up  with  piles  of  books,  etc.,  so  as 
to  shield  himself  from  the  view  of  the  room.  He  did  this  in 
self-defense,  because  he  had  to  shut  out  the  sight  of  other  peo- 
ple in  order  to  do  his  own  thinking.  One  device  which  can 
be  tried  anyyhere  by  one  who  cannot  ignore  eye  distractions 
is  that  of  merely  closing  the  eyes. 

Cases  Decided  Once  for  All 

The  noise  of  typewriter  or  phone  very  commonly  distracts 
a  man  less  than  the  reappearance  of  decisions  once  made  but 
which,  like  Banquo's  ghost,  do  not  down. 

The  executive  has  in  his  program  of  the  day's  work  a  va- 
riety of  topics  and  callers  scheduled  for  the  attention  due  them. 
Unless  these  "decided"  items  are  to  be  thieves,  they  must  upon 
receiving  the  attention  due  them  make  their  exits.  Decisions 
once  made  should  afterwards  be  a  closed  book. 

The  trying  of  doubtful  cases  over  and  over  again — unless 
new  and  essential  data  have  been  secured  since  the  decision 
was  originally  made — condemns  a  man  to  a  treadmill  exist- 
ence. This  cannot  be  tolerated  by  the  executive  who  aspires 
to  bigger  things,  since  the  swinging  of  these  bigger  things  re- 
quires that  decisions  be  definitely  made  and  business  dis- 
patched. It  is  these  items  dispatched — not  numberless  deals 
hanging  fire — which  cultivate  the  feeling  of  repose. 

A  Little  Humor  Now  and  Then 

The  inner  tension,  when  it  threatens  to  upset  a  man's  equi- 
librium, calls  for  humor  as  a  safety  valve.  How  many  an 
angry  look,  how  many  useless  quarrels  and  heated  arguments, 
have  been  dissolved  into  pleasant  occasions  by  the  power  of 


MENTAL  ECONOMY 


355 


laughter!  See  the  humorous  side  of  things,  tell  a  joke,  laugh 
your  troubles  away. 

The  seventy-five-year  old  Collis  P.  Huntington — a  man  of 
masterful  personality,  a  pioneer  and  builder  of  railroads,  who 
spared  neither  himself  nor  others — replied  to  the  reporter  who 
asked  him  how  it  was  he  kept  so  young  looking  and  "spry;" 
"Never  too  busy  to  hear  a  joke  or  to  tell  one."  This  recipe 
was  in  effect  the  same  one  employed  by  the  greatest  burden- 
bearer  this  country  has  yet  known,  Abraham  Lincoln.  When 
Civil  War  difficulties  threatened  to  crush  him,  Lincoln  told  a 
joke. 

This  suggestion  is  not  in  the  least  a  plea  for  flippancy,  but 
rather  a  protest  against  taking  one's  work  too  solemnly.  The 
expert,  whether  he  be  on  the  golf  links  or  seated  at  the  presi- 
dent's desk,  should  present  less  the  appearance  of  awe-inspiring 
solemnity  than  of  easy  confidence.  A  twinkle  in  the  eye  augurs 
well  for  the  man  who  would  go  far. 

The  Spirit  of  Youth 

The  man  who  approaches  his  tasks  with  an  easy  confidence 
and  plays  the  game  with  zest  will  possess  something  of  that 
spirit  of  youth  which  executives,  creators  of  projects  and 
pushers,  too,  must  needs  possess  if  they  are  long  to  survive. 
"Young  men  for  action — old  men  for  counsel,"  the  proverb 
says.  The  marvelous  executives  who  made  and  during  the 
Great  War  directed  the  tremendous  new  army  organizations 
in  England  and  France  were  mature  men  with  young  bodies. 

Consider  Sir  Eric  Geddes,  when  first  Lord  of  the  Ad- 
miralty, in  the  recent  coalition  English  "government  by  busi- 
ness." He  filled  two  "super-man-size"  jobs  because  of  the 
sheer,  dynamic  power  of  his  personality.  "It  is  characteristic 
of  the  man,"  wrote  Isaac  F.  Marcosson  in  the  Saturday  Eve- 
ning Post,  "that  he  never  permits  a  job  to  master  him.  He 
does  the  conquering.     Part  of  his  administrative  creed  is  to 


356  PERSONAL  DYNAMICS 

organize  his  work  so  thoroughly  that  it  can  run  without  him." 
Sir  Eric  was  at  that  time  forty-two  years  old,  six  feet  two  in 
height,  and  the  very  incarnation  of  youthful  power  and  energy. 
He  was  also  Director  General  of  Transportation  in  France  and 
Director  of  Military  Railways  at  the  War  Office.  He  literally 
took  up  a  whole  railway  system  in  England  and  laid  it  down  in 
France. 

Young  bodies,  such  men  have,  and  what  is  more,  young 
minds,  young  hearts!  Youth  dares  anything;  it  has  never 
known  defeat  or  humiliation.  And  youth  fronts  life  with 
gaiety;  a  young  face  is  a  laughing  face.  The  grown  man, 
especially  if  he  is  in  a  position  of  responsibility,  has  become 
wary;  he  thinks  rather  of  the  obstacles,  the  odds  against  him, 
the  need  of  waiting  for  reinforcements.  Moreover,  work  to 
him  is  a  sober  thing.  He  gets  no  fun  out  of  it  and  his  face 
shows  it. 

But  the  big  man — no  matter  how  often  he  has  been  de- 
feated— retains  throughout  his  career  somewhat  of  the  spirit 
of  youth — its  enthusiasm,  its  easy  confidence,  its  dash  and  zest. 

Fads  versus  Common  Sense 

The  ideals  of  mental  economy  which  have  been  discussed 
so  far  and  the  concrete  means  required  for  putting  them  into 
practical  operation  constitute  a  matter-of-fact  program.  The 
same  statement  applies  to  the  discussion  of  physical  energy  in 
a  preceding  chapter.  Nevertheless,  the  attainment  of  good 
health,  physically  and  mentally,  is  so  greatly  to  be  desired  and 
at  the  same  time  something  about  which  the  average  man  finds 
it  difficult  to  reason  scientifically,  that  no  other  subject,  save 
possibly  religion,  has  been  more  responsible  for  pet  theories, 
fads  and  delusions.  The  man  in  the  street  has  imbibed  all 
sorts  of  non-scientific  notions  as  a  part  of  his  early  childhood 
lore  and  in  the  matter  of  his  physical  and  mental  well-being 
still  acts  upon  fallacies  often  of  the  most  flagrant  sort.     Some 


MENTAL  ECONOMY 


357 


of  these  are  cited,  though  necessarily  a  small  per  cent  of  those 
which  daily  pass  as  sound  advice. 

1.  "Brain  Foods."  It  is  an  old  illusion  that  certain  foods 
are  "brain  foods,"  the  usual  assumption  being  that  fish  is  the 
food  par  excellence;  and  not  a  few  assiduously  continue  thus 
to  feed  their  stomachs  in  the  vain  hope  that  by  so  doing  genius- 
like thoughts  will  eventually  flower  in  the  brain.  The  fish- 
eating  peoples  of  the  world,  so  far  as  the  evidence  of  history 
and  statistics  goes,  show  no  preponderance  in  mental  ability. 

The  manufacturers  of  certain  foods,  which  it  may  be  added 
are  often  very  good  in  themselves  although  unusually  high  in 
price,  at  times  use  this  "brain"  appeal  in  selling  the  credulous. 
Cheese,  for  example,  is  a  good  brain  food  although  it  does  not 
become  more  so  when  branded  with  a  formidable  name  and 
sold  for  a  dollar  a  pound. 

The  fact  is,  the  brain  does  not  jealously  reach  down  into 
the  stomach  to  claim  a  certain  food  as  its  own,  but  feeds  from 
the  general  store  which  through  the  stomach  walls  and  intes- 
tines pours  into  the  blood.  All  foods,  consequently,  which 
meet  the  best  dietetic  standards  are  brain  foods. 

2.  Quantitative  Energy  Producers.  It  is  a  common  delu- 
sion that  the  mere  taking  into  the  body  of  large  quantities  of 
food  and  air  develops  physical  and  mental  force. 

It  does  not  suffice  merely  to  breathe  vast  quantities  of  air 
into  the  lungs,  nor  to  overload  the  stomach.  Energy  is  de- 
veloped in  the  cellular  tissues  from  products  transported  there 
by  the  blood,  and  that  food  or  air  which  does  not  get  into  the 
blood  through  normal  processes  is  still  outside  the  body  to  all 
practical  purposes.  The  food  must  be  digested  and  the  air 
absorbed  into  the  blood,  before  either  is  of  the  slightest  avail. 

3.  Fallacious  Vacations.  "Going  away  somewhere"  is  not 
synonymous  with  "vacation,"  popular  beliefs  notwithstanding. 

The  plaint  is  often  made  at  the  close  of  a  vacation,  "I  am 
more  tired  than  if  I  had  worked  every  day!"     This  may  be 


358  PERSONAL  DYNAMICS 

quite  true;  one's  regular  routine  thrown  topsy-turvy  and  days 
of  license  indulged  in  do  not  constitute  re-creation.  The  true 
vacation  is  closely  correlated  with  rest  conditions,  and  only  in- 
cidentally with  "going  away  somewhere." 

4.  The  "Overwork"  Delusion.  That  overwork  is  the  cause 
of  illness  or  depression,  especially  in  one's  own  case,  is  a  be- 
lief with  which  countless  persons  deceive  themselves. 

"Most  people  who  are  'overworked'  are,  more  properly 
speaking,"  says  Irving  Fisher,  "simply  the  victims  of  bad  jir, 
bad  diet,  poisons,  and  worry.  They  believe  that  because  they 
are  tired  it  must  be  work  which  is  hurting  them.  They  are  un- 
doubtedly working  beyond  their  working  capacity;  but  their 
working  capacity  is  only  a  fraction  of  what  it  would  be  if  they 
took  exercise,  were  not  constipated,  did  not  eat  too  much,  ab- 
jured alcohol,  or  ceased  to  worry  continually.  If  they  lived 
hygienically  in  these  respects,  the  work  which  was  a  drag 
might  be  an  inspiration." 

5.  "Health  Thoughts."  The  view  that  inasmuch  as  mind 
controls  body  health  thinks  are  a  panacea,  is  a  prevalent  fad. 

The  mind  does  control  the  body  to  an  extent  far  surpass- 
ing what  might  be  judged  ofif-hand ;  hence  the  crop  of  pseudo 
sciences,  extravagant  in  their  claims,  perennial  in  their  "dis- 
coveries." But  while  mind  does  influence  body,  body  in 
turn  influences  mind;  in  fact,  the  two  act  and  react  upon  each 
other  most  intimately.  Hence  in  answer  to  these  pseudo 
mental  sciences  we  need  only  point  out  that  whereas  2  -f  2  =  4, 
two  alone  can  never  equal  four.  Apostles  of  many  occultisms 
may  take  note ! 

6.  "Patenf  Health  Builders.  "Isms"  and  paraphernalia 
as  the  true  road  to  health,  constitute  another  delusion  most 
ingeniously  exploited. 

The  simple  things  have  nobody  interested  in  exploiting  their 
claims,  but  they  will  continue  to  build  up  physical  and  mental 
vigor  centuries  after  the  exponents  of  Dr.   Blank's  Health 


MENTAL   ECONOMY  359 

Foods,  Dr.  Simon's  Electric  Belt  and  Sampson's  Clothes  Closet 
Gymnasium  have  lived  out  their  allotted  time.  "Any  system 
of  physical  culture,"  says  Dr.  Woods  Hutchinson,  "which  does 
not  include  at  least  from  two  to  four  hours'  gentle  exercise  a 
day  in  the  open  air,  three  square  meals,  and  plenty  of  sleep  is 
of  the  Evil  One." 

7.  Long  Suffering  Credulity.  Finally  there  is  the  persist- 
ent delusion  that  any  health  "system"  is  worth  a  trial. 

How  else  could  we  account  for  the  never-ending  fads  in 
diet,  chewing,  exercise,  clothing?  The  propounders  of  these 
fads  very  commonly  are  invalids  and  from  what  little  conclu- 
sive evidence  we  have  of  them,  viz.,  their  own  death  rates,  they 
are  what  an  insurance  company  terms  poor  life  risks.  Those 
who  devote  themselves  to  such  fads  are  simply  taking  chances. 
This  means  learning  only  by  trial  and  error,  the  slowest  and 
most  costly  of  all  learning  processes.  The  wise  man  uses  fore- 
sight, he  reasons  in  advance  what  the  effects  will  be ;  and  there 
is  the  same  need  in  health  culture  as  elsewhere  to  employ  this 
eminently  practical  method. 


Exercises 
"Planning"  Mental  Effort 

The  difference  between  old-world,  rule-of-thumb  methods  and  the 
pioneer  type  of  mind  has  been  illustrated  by  this  story:  There 
was  once  a  piece  of  work  that  would  take  about  six  days  to  finish 
with  the  tools  at  hand.  The  old  world  workman  contemplated  it 
steadily  and  not  very  thoughtfully  for  several  minutes,  then  he 
went  at  it  methodically  but  stoically  and  did  it  in  just  the  same  way 
at  exactly  the  same  speed  as  was  his  custom.  He  finished  the  piece 
of  work  in  six  days. 

The  pioneer  sat  and  looked  at  his  task  for  quite  a  while.  "Durn 
it,"  he  thought,  "that'll  take  me  six  or  seven  days."  He  thought 
all  the  first  day  and  the  second  and  most  of  the  third.  Then  he  began 
to  make  himself  some  new  tools.  They  were  ready  on  the  sixth  day. 
Early  the  next  morning  the  pioneer  went  to  work  and  at  sundown  the 
job  was  done.    It  took  him  seven  days  to  attain  his  end  but — he  had 


36o 


PERSONAL  DYNAMICS 


a  set  of  new  and  better  tools.    With  these,  ever  afterwards  he  could 
accomplish  the  six  days'  task  in  one. 

The  mental  economist  is  like  the  pioneer.  He  prefers  not,  like  the 
average  man,  to  blunder  along  somehow,  wasting  his  time  and  effort 
improductively,  worried,  distracted,  and  working  in  the  high-cost 
fatigue  zones ;  but  by  taking  thought  in  advance  to  devise  for  himself 
standards  of  conservation  which  ever  afterwards  serve  him  well. 


Conservation 
Standards 

Sun. 

Mon. 

TUE. 

Wed. 

Thu. 

Fri. 

Sat. 

Definite  accomplish- 
ment 

Use  of  habits 

Objectivity  of  mind 

Recreation 

Relaxation 

Repose 

Freedom  from  fads 

Daily  Totals 

Week  Ending Total  Credits.  . 

Test  Chart  i8 — Mental  Economy's  Self-Grading  Chart 

Pioneer  methods,  that  is,  carefully  thought  out  standards,  are  in  the 
end  always  the  most  economical. 

Let  us  see  how  we  can  proceed  to  make  certain  of  these  conserva- 
tion standards  now  our  own. 


A.  Self-Grading  Chart 
Test  Chart  i8  is  to  be  used  in  the  same  way  as  was  Test  Chart  17. 


MENTAL   ECONOMY  361 

Credit  yourself  daily  with  a  "2"  for  each  item  conscientiously  ob- 
served, a  zero  for  those  neglected  or  violated,  and  a  "Yz"  a  "i,"  or 
a  "i^"  for  those  partially  observed.  General  good  behavior  during 
a  week  or  some  especially  meritorious  act  of  mental  economy  is  to 
receive  two  additional  credits,  100  credits  representing  a  perfect 
score. 

What  record  do  you  score  as  a  conserver  of  your  nervous  and  men- 
tal resources? 

The  discussion  in  this  chapter  of  introspection  versus  objectivity 
emphasizes  the  spirit  in  which  Test  Chart  18,  as  well  as  the  various 
other  forms  in  this  book,  should  be  approached.  As  a  first  step  to 
better  methods  you  should  know  what  your  present  methods  are. 
Upon  this  information  as  a  basis  better  methods  will  be  devised, 
whose  improvements  when  made  ought  to  be  recorded.  But  the  pur- 
pose of  the  forms  will  be  vitiated  if  you  turn  into  a  mere  destructive 
self-critic.  Let  self-analysis  always  be  followed  by  positive  plans; 
put  the  emphasis  upon  improvement  and  the  definite  methods  through 
which  this  improvement  can  be  reached.  Used  in  this  \  ay,  the  forms 
will  make  definite  your  program  and  afford  incentive. 


PART  VII 
PERSONAL  FINANCE 

Experience  has  proved  that  it  is  not  safe  to  lend  money  to 
men  who  have  not  proved  their  ability  to  save  money. 

— Joseph  French  Johnson. 

In  city  and  in  country,  from  the  captains  of  finance  to  the 
smallest  units  in  the  army  of  business,  in  transportation,  in 
manufacturing,  in  trading,  even  in  farming,  the  corporation 
has  come  to  be  recognized  as  the  best  form  yet  discovered 
for  organizing  the  production  of  wealth. — William  H. 
Lough. 

This  is  the  time  for  America  to  correct  her  unpardonable 
fault  of  wastefulness  and  extravagance.  —  Woodrow 
Wilson. 


CHAPTER  XIX 

THE   POWER   OF   FINANCE 

It  is  of  no  use  to  have  big  ideas  if  you  have  not  the  cash 
to  carry  them  out. — Cecil  Rhodes. 

Pushing  a  Business  Project 

The  big  ideas  of  which  Mr.  Rhodes  speaks,  and  cash  as 
well,  were  absent  in  the  case  of  Mary  Elizabeth  Evans,  a  girl 
of  sixteen,  who  some  fifteen  years  ago  with  her  widowed 
mother  and  three  younger  children  was  living  on  her  grand- 
father's farm  near  Syracuse,  New  York.  The  death  of  their 
grandfather  had  thrown  them  on  their  own  resources.  The 
problem  of  clothes,  education,  and  the  many  other  require- 
ments of  a  growing  family,  was  very  difficult.  The  task  of 
solving  the  problem  devolved  on  Mary  Elizabeth. 

To  meet  the  situation,  Mary  Elizabeth  possessed  two  valu- 
able personal  qualifications,  neither  as  yet  recognized  by  her 
as  a  business  asset.  She  was  a  born  candy-maker  and  a  born 
executive.  In  addition,  she  was  desperately  anxious  to  in- 
crease the  family  income.  But  what  to  do,  she  did  not  know. 
Her  attitude  was  one  of  "watchful  waiting." 

Her  opportunity — though  not  recognized  as  such  at  the 
time — came  in  the  form  of  a  house-party  given  by  an  old 
family  friend  in  Syracuse.  Mary  Elizabeth  wanted  to  help, 
and  her  contribution  took  the  form  of  home-made  candy, 
sent  in  a  neat  box  and  labeled  "Mary  Elizal>eth's  Candy." 
The  candy  made  a  "hit."  It  was  good,  it  was  attractive,  it 
was  different  from  anything  the  guests  had  tasted  before,  and 
inquiries  soon  drew  its  story  from  the  willing  hostess.  She  also 
volunteered  an  opinion  that  orders  would  be  gladly  received. 

365 


366  PERSONAL  FINANCE 

The  guests  were  interested  and  practically  every  one  of  them 
put  in  an  order  for  a  weekly  box  of  Mary  Elizabeth's  candy. 
This  was  the  starting-point  of  the  "Mary  Elizabeth"  busi- 
ness. The  candy  was  made  at  home  and  delivered  by  the  chil- 
dren, collections  being  made  as  the  candy  was  delivered.  This 
little  trade  thus  established  grew,  but  grew  slowly  because  of 
the  out  of  the  way  location  of  the  "factory."  It  was  too  dif- 
ficult for  would-be  patrons  to  place  orders  and  it  was  apparent 
that  some  more  effective  method  of  selling  and  distributing 
was  essential  if  the  business  was  really  to  amount  to  anything. 

The  "Help  Yourself"  Plan 

At  this  critical  time  it  was  suggested  to  Mary  Elizabeth 
that  a  booth  could  be  rented  on  easy  terms  in  the  Arcade  of  the 
University  Building.  This  would  give  a  central  and  desirable 
location  in  Syracuse.  The  rental  was  within  reach  and  the 
opening  attractive,  but  how  was  attendance  to  be  provided 
for?  Mary  Elizabeth  herself  had  the  candy-making  to  look 
after;  the  other  children  were  too  young;  a  paid  attendant  was 
beyond  their  means.  An  implicit  trust  in  human  nature  finally 
solved  the  problem.     The  customers  must  serve  themselves. 

The  booth  was  rented,  neatly  fitted  up,  and  stocked  with  an 
attractive  display  of  candy,. every  box  plainly  labeled  with  its 
price.  An  open  cash  box  was  provided  and  suitable  signs 
notified  the  passers-by  to  help  themselves  and  put  the  money 
in  the  box.  Change  to  the  amount  of  two  dollars  was  placed 
in  the  cash  box  for  the  convenience  of  customers  and  the  new 
venture  was  launched. 

The  success  of  the  "help  yourself"  booth  was  immediate. 
The  excellence  of  the  candy,  the  attractiveness  of  the  display, 
the  entire  novelty  of  its  method,  brought  a  liberal  and  increas- 
ing patronage.  The  contents  of  the  cash-box  sometimes  ran 
up  as  high  as  fifteen  dollars.  Customers,  neighboring  tenants 
and  even  the  newsboys  who  sojd  papers  in  the  Arcade,  vied 


THE  POWER  OF  FINANCE  367 

with  one  another  in  the  protection  of  Mary  Elizabeth's  prop- 
erty, and  the  promotion  of  her  business. 

Growth  of  the  Business 

The  success  of  the  booth  soon  supplied  the  funds  and  the 
basis  for  a  larger  candy  shop  located  near  the  Arcade.  This 
store,  conducted  on  the  same  principle  of  giving  value  re- 
ceived, always  meeting  the  demands  of  its  patrons,  of  being 
a  little  different  from  other  stores,  was  as  successful  on  a 
larger  scale  as  the  booth  had  been;  and  from  that  time  on  the 
Mary  Elizabeth  record  is  one  of  a  very  successful,  self- 
financing  undertaking. 

At  the  present  time,  the  business  is  a  large  one.  Its  candy 
stores  and  tea  rooms  are  located  in  half  a  dozen  different 
cities.  The  rental  for  one  of  these  alone — the  Fifth  Avenue 
store  in  New  York  City — amounts  to  $45,000  a  year,  and  the 
annual  "turn-over"  of  the  various  establishments  runs  far  up 
in  the  hundreds  of  thousands,  of  dollars.  Mary  Elizabeth 
remains  at  the  head  of  the  establishment  founded  so  humbly 
some  fifteen  years  ago,  and  it  is  still  conducted  on  the  same 
general  lines  laid  down  in  the  early  history  of  the  undertaking. 

In  Business  for  Oneself 

The  little  candy-maker  succeeded  in  doing  successfully 
that  which  men  in  large  number  long  to  do — launch  a  profit- 
able enterprise  of  their  own.  Most  men  of  ability,  in  fact, 
would  rather  work  for  themselves  than  for  others.  "I  would 
give  anything  to  go  into  business  for  myself,"  declared  a  high 
official  recently,  a  man  who  stands  in  the  highest  ranks  of 
New  York's  leading  railroad  system.  "After  twenty  years  of 
working  for  some  one  else,  I  feel  very  strongly,  at  times,  that 
I  want  to  be  absolutely  independent."  This  statement  was 
made  by  a  man  whose  salary  runs  into  five  figures.  He  is 
enthusiastically  interested  in  his  work,  and  gets  on  well  with 


368  PERSONAL  FINANCE 

his  associates.  But  to  "be  one's  own  boss"  is  often  a  greater 
attraction  to  the  executive  type  of  man  than  to  work  for  an- 
other— even  when  independence  results  in  lessened  earnings. 
The  growing  size  and  complexity  of  modern  undertakings 
diminishes  the  opportunities  for  the  one-man  business,  or  the 
partnership  in  which  men  are  their  own  bosses.  It  is  to  be 
noted,  however,  that  almost  every  big  business  of  the  present 
day  has  grown  from  small  beginnings  and  that  it  happens  in 
the  career  of  most  executives  that  at  one  time  or  another  they 
see  the  opportunity  of  running  a  business  of  their  own.  The 
task  itself  is  complex  and  difficult,  that  is  certain,  but  by  no 
means  impossible. 

Requisites  of  a  Successful  Enterprise 

In  the  succeesful  development  of  a  new  enterprise  three 
things  are  essential : 

1.  A  sound  undertaking. 

2.  Efficient  management. 

3.  Sufficient  capital. 

The  order  in  which  the  three  factors  are  listed  above  repre- 
sents their  importance.  A  sound  undertaking,  efficiently  man- 
aged, will — unless  the  odds  are  too  heavy — overcome  the 
handicap  of  insufficient  working  funds.  It  may  also  survive 
a  period  of  inefficient  management  and  be  rescued  from  dis- 
aster by  a  change  in  its  executive  force.  But  a  business  which 
is  unsound  at  the  core  must  fail  sooner  or  later. 

Testing  the  Soundness  of  an  Enterprise 

The  necessity  for  a  sound  undertaking  is  apparent.  When 
a  man  starts  in  a  line  in  which  he  has  already  had  a  wide  expe- 
rience and  knows  its  possibilities  he  is  generally  a  good  judge 
of  its  worth.  In  some  cases,  however,  a  business  must  be 
tested  or  even  developed  before  its  soundness  or  unsoundness 


THE  POWER  OF  FINANCE  369 

can  be  determined.  Money  is  frequently  thrown  away  be- 
cause no  thorough  investigation  is  made  of  the  enterprise 
itself,  or  of  the  future  possibilities  of  the  market  or  of  the 
supply  of  the  materials  or  other  essentials  upon  which  the 
life  of  the  enterprise  depends. 

The  importance  of  testing  out  and  selecting  the  most  feas- 
ible project  was  discussed  in  Part  IV;  "The  Thinker  in  Busi- 
ness." Generally  speaking,  the  value  of  almost  every  new 
enterprise  may  be  investigated  or  put  to  test  in  advance  of 
operation  at  a  small  fraction  of  the  cost  required  to  try  it 
out  on  a  commercial  scale.  The  man  who  believes  in  the 
future  of  a  business  should  have  actual  tested  facts  on  which 
to  base  his  belief. 

The  Factor  of  Management 

Given  a  sound  plan  or  project  to  start  with,  the  problem 
of  its  management  is  the  next  important  consideration.  Usu- 
ally the  young  man  starting  in  business  for  himself  or  inter- 
ested in  a  venture  or  side  line  of  his  own,  thinks  that  capital 
is  the  next  essential  of  success,  but  this  is  not  so.  A  sound  un- 
dertaking, if  managed  by  men  whose  integrity  and  ability  are 
known  and  proved,  will  always  be  able  to  attract  the  capital 
required  to  finance  it.  The  enterprise  may  be  meritorious,  the 
money  supply  may  be  ample,  but  every  banker  and  investor 
knows  that  without  good  management  the  business  will  fail. 

In  speaking  before  a  group  of  Wall  Street  financiers  who 
were  discussing  the  possibility  of  obtaining  the  very  large  sum 
of  money  required  to  carry  out  a  project  under  consideration  a 
prominent  banker  said :  "Gentlemen,  this  matter  of  money  is 
the  least  thing  we  have  to  think  about!  There  is  only  one 
problem.  Where  are  we  to  find  the  man  big  enough  to  handle 
the  job?  I  speak  as  a  banker  and  not  in  my  personal  capacity 
when  I  tell  you  that  if  you  will  show  me  the  right  man  to  put 
through  the  plans  we  are  discussing,  you  need  not  give  the 


370  PERSONAL  FINANCE 

money  a  single  thought."  The  financing  of  the  project  was  to 
him  a  comparatively  simple  problem.  The  finding  of  the  right 
kind  of  man  to  handle  it  was  the  difficult  matter. 

Sufficient  Capital 

The  third  essential,  sufficient  capital,  is  the  one  with  which 
we  are  here  primarily  concerned.  The  reader,  it  is  assumed, 
has  his  profit-making  project  in  mind;  he  is  thoroughly  con- 
vinced he  can  manage  it;  but  where  can  the  necessary  funds 
be  secured?  This  is  the  problem  to  which  the  next  chapters 
are  devoted. 


CHAPTER  XX 

THRIFT  AS  A  WORKING  POLICY 
Your  ship  can't  come  in  unless  you  send  one  out. 

Financial  Preparedness 

The  number  of  persons  who  beheve  that  they  could  make 
a  fortune  if  only  they  "had  the  money"  is  astonishingly  large. 
Opportunities  appear;  they  are  detected,  but  owing  to  financial 
unpreparedness  they  cannot  be  grasped.  The  difficulty  and 
how  certain  men  with  such  notable  success  have  solved  it,  ap- 
pears well  illustrated  in  the  following  incident  drawn  from 
the  early  career  of  H.  C.  Frick,  the  "coke  king"  and  multi- 
millionaire. 

In  company  with  two  partners,  Rist  and  Tinstman,  Frick 
had  early  engaged  in  the  coke  business.  The  panic  of  1873, 
however,  which  littered  the  country  with  financial  wrecks, 
plunged  the  firm  into  bankruptcy  and  the  two  partners  very 
much  desired  to  liquidate  their  holdings.  Although  young, 
relatively  inexperienced,  and  already  burdened  with  more 
debt  than  capital,  Frick  so  believed  in  the  future  of  the  coke 
business  that  he  sought  out  Pittsburgh's  principal  banker 
and  staggered  him  with  the  size  of  the  loan  he  wished  to 
negotiate. 

Mr.  Forbes,  in  "Men  Who  Are  Making  America,"  tells 
the  story  as  follows : 

Judge  Mellon  sent  a  man  (an  uncle  of  W.  E.  Corey)  to 
Broad  Ford  to  investigate  the  character  and  caliber  of  this 
daring  Napoleon  of  finance.  Instead  of  finding  H.  C.  Frick 
to  be  one  of  the  leading  citizens  of  the  place,  living  in  sump- 
tuous style  and  owning  a  wealth  of  property,  the  investiga- 
tor discovered  him  to  be  merely  a  youth  of  24,  employed  as 


372  PERSONAL  FINANCE 

a  bookkeeper  and  living,  not  in  a  mansion,  but  in  two  small 
rooms  over  a  drug  store.  Inquiry  elicited  the  facts  that  the 
young  man  was  held  in  the  highest  regard,  that  his  industry 
and  ability  were  the  common  talk  of  the  place,  and  that  his 
handling  of  the  new  coke  concern  had  proved  both  able  and 
successful.  Judge  Mellon,  instead  of  feeling  disappointed 
over  the  humble  circumstances  of  the  would-be  borrower, 
decided  that  a  young  man  of  such  enterprise,  talent,  and 
courage,  with  horse  sense  enough  to  live  on  a  few  dollars 
a  week  in  order  to  increase  his  capital,  deserved  to  be  helped. 
So  the  loan  was  granted. 

Not  only  did  Frick  buy  out  his  two  partners,  but  he  gath- 
ered in  other  properties  at  bankruptcy  figures.  Prick's  readi- 
ness to  buy  or  lease  other  coal  lands  and  coke  properties — 
the  whole  coke  industry  amounted  to  only  a  few  hundred 
ovens — caused  the  townspeople  to  look  upon  him  as  a 
lunatic.  .  .  . 

The  return  of  financial  calm  found  Frick  the  sole  owner 
of  Frick  &  Company.  Output  rose  above  fifty  tons  a  day 
and  the  price  went  from  ninety  cents  to  abovo  two  dollars ; 
later  (1879-80),  when  the  boom  set  in,  coke  soared  to  above 
five  dollars  a  ton,  and  every  day  the  sun  rose  Frick  sold  over 
$30,000  worth  of  the  fuel  and  pocketed  a  net  profit  of  over 
$20,000. 

Building  Solidly 

The  business  man  with  his  enterprise  under  way  needs, 
even  after  his  own  powers  of  brain  and  physique  have  been 
developed  to  their  utmost,  certain  reinforcements  if  he  is  to 
attain  a  really  notable  career.  He  has  to  utilize  capital  for  this 
reason.  Inevitably  the  alert,  forward-looking  executive  sooner 
or  later  is  a  seeker  of  funds. 

The  seeker  of  funds  in  the  person  of  H.  C.  Frick  was  a 
man  who  had  thoroughly  mastered  his  financial  A  B  C's.  He 
had  learned,  never  to  be  forgotten,  the  essential  rudiments  of 
the  financier's  language  and  he  had  practiced  finance's  basic 
virtues.  Those  whom  he  approached  for  funds,  recognized 
that  he  knew  full  well  the  value  of  a  dollar.  The  business  man 
uses  the  dollar  as  the  unit  that  measures  his  capital.  It  stands 
as  the  measure  of  his  plant,  his  equipment,  his  stock-in-trade. 


{ 


THRIFT  AS  A  WORKING  POLICY 


373 


his  armament  for  the  competition  of  commerce.  If  he  does 
not  realize  its  value,  its  power,  its  force,  he  will  not  know 
how  to  use  it,  how  to  handle  it,  how  to  care  for  it.  Unless 
some  other  has  earned  it  for  him,  he  is  not  likely,  in  such  case, 
ever  to  have  much  to  use,  and  so  will  fail  to  hold  his  own,  for 
lack  of  tools  to  work  with,  weapons  to  fight  with,  and  capital 
with  which  to  command  success. 

American  Habits  of  Waste 

The  basis  of  financial  power  is  laid  in  those  elementary 
habits  of  prudent  spending  and  wise  saving,  which  boys  should, 
though  unfortunately  they  do  not  with  anything  like  the  thor- 
oughness desired,  receive  as  an  essential  part  of  their  early 
training.  Prevalent  habits  too  commonly  are  opposed  to  such 
soundness  of  financial  training. 

"Americans  are  the  most  reckless  spenders  in  the  world," 
says  the  president  of  Sears,  Roebuck  and  Company,  Julius 
Rosenwald.  "The  average  man  in  this  country  is  spending 
every  dollar  he  makes  and  maybe  more." 

$500,000,000  annually  is  the  waste  represented  by  our 
smoking  factory  chimneys. 

$30,000,000  worth  of  waste  paper,  approximately,  is 
burned  in  the  United  States  every  year. 

$2,500,000  is  spent  for  suppers,  theaters,  cabs,  liquors, 
tips,  and  the  like,  in  New  York  City  on  New  Year's  Eve. 
Since  every  community  has  its  counterpart  of  New  York's 
"Great  White  Way,"  this  extravagance  and  folly  is  wide- 
spread. 

The  value  of  thrift  during  the  Great  War  was  accen- 
tuated among  citizens  of  every  belligerent  country.  Yet  the 
struggle  for  a  higher  plane  of  living  and  the  need  for  capital 
are  with  us  always;  we  need  no  war  to  teach  us  to  practice 
the  commandments  of  an  enterprising  frugality.     Thrift  is  a 


374  PERSONAL  FINANCE 

virtue,  whose  services  the  personal  manager  can  always  find  it 
worth  while  to  utilize. 

Value  of  Thrift 

"If  you  want  to  know  whether  you  are  destined  to  be  a 
success  or  a  failure  in  life,  you  can  easily  find  out,"  said  James 
J.  Hill.  "The  test  is  simple  and  it  is  infallible :  Are  you  able 
to  save  money?  If  not,  drop  it.  You  will  lose.  You  may 
think  not,  but  you  will  lose  as  sure  as  you  live.  The  seed  of 
success  is  not  in  you." 

Thrift  is  a  security  against  adversity. 

"Save  a  little  of  thy  income,"  said  Benjamin  Franklin, 
"and  thy  hidebound  pocket  will  soon  begin  to  thrive  and  thou 
wilt  never  cry  again  with  empty  stomach,  neither  will  cred- 
itors insult  thee,  nor  want  oppress,  nor  hunger  bite,  nor  will 
nakedness  freeze  thee.  The  whole  hemisphere  will  shine 
brighter  and  pleasure  spring  up  in  every  corner  of  thy 
heart." 

Thrift  develops  the  business  character. 

"Extravagance  rots  character;  train  youth  away  from  it," 
said  Theodore  Roosevelt.  "On  the  other  hand,  the  habit  of 
saving  money,  while  it  stiffens  the  will,  also  brightens  the 
energies.  If  you  would  be  sure  that  you  are  beginning  right, 
begin  to  save." 

Thrift  helps  to  establish  credit. 

''Before  you  are  taken  into  partnership  and  given  a  chance 
to  spend  the  funds  of  the  firm,"  wisely  declared  Elbert 
Hubbard,  "you  must  give  evidence  that  you  know  how  to 
care  for  your  own.  The  worthless,  the  shiftless,  the  in- 
sincere, the  always  needy,  never  get  ahead  and  at  the  bank 
they  are  unknown." 

Thrift  enables  you  to  take  advantage  of  opportunities. 

This  is  its  main  service.  It  represents  in  operation  the 
foundations  of  a  financial  preparedness. 


THRIFT  AS  A  WORKING  POLICY 


375 


Plans  Suggested  for  Saving 

The  thrift  pohcy,  however  high  it  may  eventually  trans- 
port a  man,  has  its  foundations  in  the  humble  and  too  fre- 
quently despised  virtue  of  making  small  savings.  Since  the 
desire  to  run  before  one  has  learned  to  crawl  upsets  many  a 
career,  those  who  wish  to  get  into  the  spirit  of  capital  accumu- 
lation, to  learn  its  language,  and  to  operate  with  it  effectively, 
should  resolve  first  of  all  to  become  thrifty;  more  than 
that,  resolve  to  practice  some  certain  concrete  plans  for  saving 
until  thrift  has  taken  firm  root  as  a  habit. 

Like  nearly  all  of  our  positive  activities,  saving  must  first 
be  accepted  as  a  principle  of  action  and  then  followed  per- 
sistently until  it  becomes  a  habit. 

There  are  several  concrete  plans  for  saving  that  are  worth 
noting : 

I.  Saving  from  Income  All  Possible.  A  man  may  resolve 
that  out  of  his  earnings  he  will  always  save  as  much  as  he 
possibly  can.  As  a  boy  digging  potatoes,  Mr.  Rockefeller 
reached  the  conclusion  that  money  was  to  be  his-  slave  and 
it  is  clear  that  he  early  realized  the  importance  of  the  habit 
of  saving.  In  his  first  position  as  clerk  and  bookkeeper  he 
had  earned  from  September  26,  1855,  to  January,  1856. 
fifty  dollars,  out  of  which,  he  told  the  members  of  his 
Sunday-school  class  years  later,  "I  paid  my  washerwoman 
and  the  lady  I  boarded  with,  and  I  saved  a  little  money  to  put 
away."  This  careful  financing,  the  items  of  which  the  young 
man  daily  recorded  in  the  small  ledger  which  has  since  figured 
in  its  owner's  religious  instructions,  proved  solid  as  a  foun- 
dation for  the  credits  he  later  sought.  Mr.  Rockefeller  had 
the  ambition  to  get  on  so  firmly  ingrained  that  it  was  prob- 
ably easier  for  him  to  put  by  every  cent  he  could  spare  than 
to  spend  it  on  self-indulgence. 

Those*of  social  habits,  surrounded  by  free-spending  com- 


376  PERSONAL  FINANCE 

panions,  and  in  whom  the  will  to  save  is  not  well  developed, 
probably  will  find  the  plan  to  save  all  that  is  "possible"  too 
general  for  them.  The  plans  which  follow  are  more  definite 
and  put  a  person  under  closer  restraint. 

II.  Saving  a  Definite  Sum  or  Percentage.  A  man  can  cal- 
culate how  much  of  his  income  he  requires  to  pay  living  ex- 
penses and  how  much  he  should  lay  away.  Then  each  time 
he  receives  his  salary  or  other  income,  he  will  set  aside  and 
rehgiously  put  away  that  amount  (preferably  in  a  savings 
account).  Or  instead  of  a  definite  sum  it  can  be  a  definite 
percentage,  as  lo  per  cent  or  20  per  cent  of  all  earnings.  To 
carry  this  plan  out  effectively  is  easier  for  most  men  and  will 
produce  better  results  than  to  leave  the  amount  to  be  saved 
indefinite. 

The  man  who  has  decided  that  upon  the  receipt  of  his 
salary  check  each  month  $5,  $20,  $50,  or  whatever  he  has 
determined  on,  shall  be  set  aside  without  fail,  has  made  a 
definite  move  toward  financial  independence. 

III.  Investing  on  the  Partial  Payment  Plan.  The  flotation 
of  successive  Liberty  Bond  issues  has  done  much  to  popu- 
larize this  plan  of  investment,  although  the  plan  itself  had 
already  been  in  operation  for  several  years.  The  terms  of 
the  partial  payment  plan,  because  they  are  so  extremely 
flexible,  adapt  themselves  to  everyone's  circumstances.  The 
man  with  capital  can  invest  it  at  once,  and  by  adding  a  part  of 
his  outside  income  regularly,  finally  become  the  owner  of 
bonds  and  sound  dividend-paying  stocks.  It  is  therefore  un- 
necessary to  wait  until  the  money  required  for  full  payment 
has  accumulated,  because  the  dividends  paid  on  the  securities 
are  credited  to  the  partial  payment  owner  and  these  dividends 
usually  exceed  in  amount  the  interest  charged  on  his  net  in- 
debtedness. 

IV.  The  Plan  of  Cash  Payments.    In  conducting  a  house- 


THRIFT  AS  A  WORKING  POLICY 


377 


I 


hold  or  in  the  matter  of  personal  expenditures  it  is  very  con- 
venient to  have  accounts  at  one  or  more  good  stores  and  then 
buy  as  required  and  settle  at  the  end  of  the  month. 

The  fact  that  this  is  so  easy  and  convenient  tempts  a  person 
in  a  simple  yet  seductive  way  to  live  beyond  his  means.  The 
salesman  is  persuasive,  the  time  of  payment  is  far  ofif,  and  it 
is  so  much  easier  to  have  the  attractive  articles  charged  than 
to  deny  oneself  and  withstand  the  salesman's  skilled  appeal 
to  our  desires.  The  consequence  is  that  when  the  end  of  the 
month  comes  the  head  of  the  house  is  appalled  at  the  sum  total 
of  the  charge  accounts. 

Advertising  and  salesmanship  have  become  arts,  taught 
in  schools  and  through  text-books,  and  it  has  been  well  sug- 
gested that  buyers  should  likewise  be  instructed  and  warned 
so  they  can  understand  how  they  are  persuaded  into  purchases 
they  do  not  need  and  prices  they  cannot  afford. 

Pending  this  course  for  buyers,  the  adoption  of  a  rule  to 
pay  cash  will  have  an  excellent  effect  in  reducing  expenses. 
Many  things  lose  their  appeal  when  cash  outright  must  be  paid, 
and  at  times  the  less  expensive  article  is  found  to  be  equally 
good. 

V.  The  Budget  Plan  for  Controlling  Expenditures.  The 
budget  when  applied  to  personal  expenditures  has  two  im- 
portant advantages ;  it  calls  for  planning  and  it  provides  checks 
upon  funds  both  received  and  spent.  When  all  expenditures 
are  itemized  and  examined,  unexpected  wastes  are  revealed 
and  opportunity  is  afforded  to  secure  more  complete,  because 
better  planned,  gratifications  while  the  savings  fund  is  safe- 
guarded. 

The  habit  of  mapping  out  and  carefully  deciding  how  in- 
come shall  be  apportioned  to  the  cost  of  living  for  an  indi- 
vidual or  for  a  household  is  of  great  importance.  The  same 
principles  prevail  here  that  regulate  budget-making  for  busi- 
nesses, municipalities,  states,  and  governmental  departments. 


378  PERSONAL  FINANCE 

This  method  develops  thrift,  foresight,  and  economic  intelH- 
gence.  It  necessitates  the  classification  of  expenditures  into 
necessary  and  discretionary.  It  reveals  the  small  and  uncon- 
sidered expenses  that  mount  up  so  astonishingly.  It  promotes 
a  wise  spending  and  a  judicious  economy.  In  itself  it  is  a 
business  discipline  and  training  of  intrinsic  valve  for  every 
man  and  also  every  woman.  To  estimate  the  proportionate 
amount  of  expenditure  for  the  various  items  that  make  up  the 
cost  of  living  is  not  particularly  easy,  but  as  a  start  it  is  advis- 
able to  run  over  the  outlays  for  the  preceding  year  and  divide 
them  as  accurately  as  may  be  possible.  One  who  has  never  done 
anything  like  this,  will  have  some  surprises  when  he  finds 
where  his  income  has  gone.  Also,  it  will  show  at  once  some 
directions  in  which  economy  is  possible. 

Then  take  the  separate  division  and  assign  to  each  its  pro- 
portion of  next  year's  income.  In  doing  this  begin  with  the 
most  important.  The  figures  given  below  are  for  a  suburb 
near  Philadelphia,  as  prices  were  in  191 7  for  a  family  of  five 
with  an  income  of  $2,400.  The  same  general  budget  can  be 
worked  out  for  any  scale  of  family  expenditure. 

Food   33p  $800 

Rent    20%  480 

Operating    expenses l'5%  360 

Clothes    15%  360 

Advancement   i6§%  400 

100%     $2,400 

"Operating  expenses"  are  for  fuel,  light,  laundry,  medical 
and  dental  expense  and  depreciation  of  household  plant. 

"Advancement"  covers  all  expenditures  for  education, 
philanthropy,  religious  causes,  books,  music,  amusements, 
vacations,  and  social  and  community  life.  Insurance  and  sav- 
ings and  additions  to  household  equipment  would  come  under 
this  head,  unless  a  specific  deduction  for  their  purposes  is  made 
from  income  before  allotting  the  budget. 


THRIFT  AS  A  WORKING  POLICY 


379 


If  the  result  exceeds  the  income  or  leaves  but  a  negligible 
sum  for  savings  it  is  necessary  to  cut  down  and  the  analysis 
must  proceed  further.  Food  can  be  divided  and  the  amount 
computed  for  meat,  fish,  bread  or  flour,  fruit,  milk,  eggs,  sugar, 
and  so  on.  Before  the  war  economies  enforced  a  reform  many 
American  families  put  a  great  many  dollars  into  their  garbage 
pails.  A  great  deal  of  money  is  expended  for  clothes  that 
are  unnecessary  and  bought  without  much  discretion. 

The  Family  Standard  of  Living 

The  attempt  to  bring  expenditures  to  a  rational  basis  must, 
of  course,  proceed  with  a  due  regard  to  one's  social  position 
and  the  whole  range  of  interests  which  make  life  worth 
while.  Man  is  a  gregarious  and  social  animal  and  his  life 
and  activities  are  to  be  spent  with  his  fellows.  His  future 
success  and  influence  depend  most  largely  on  his  ability  to 
work  and  do  business  with  and  among  his  fellows.  To  ac- 
quire any  ease  and  facility  in  social  life,  one  must  dress,  live, 
and  enjoy  oneself  as  those  do  who  are  on  the  same  plane. 
Many  social  requirements  and  usages  are  unreasonable, 
not  to  say  absurd,  yet  even  the  wisest  men  have  to  be  careful 
not  to  depart  too  far  from  the  standard. 

At  the  same  time,  if  at  the  end  of  each  month  there  is  not 
quite  enough  to  meet  all  the  bills;  if  an  unexpected  sickness 
means  borrowing  from  a  relative  or  a  friend;  if  the  home  life 
means  stress  and  anxiety  instead  of  rest  and  contentment, 
then  business  efficiency  is  at  stake  and  good  executive  work  is 
impossible.     Mr.  Micawber's  sage  reflection  applies: 

Annual  income  twenty  pounds,  annual  expenditure  nine- 
teen pounds,  nineteen  shillings,  six  pence;  result — happiness. 
Annual  income  twenty  pounds,  annual  expenditure  twenty 
pounds,  aught,  and  six;  result — misery.  The  blossom  is 
blighted;  the  leaf  is  withered;  the  God  of  day  goes  down 
upon  the  dreary  scene,  and — and  in  short  you  are  found 
floored. 


380  PERSONAL  FINANCE 

The  foregoing  plans,  taken  as  examples  of  the  various 
methods  a  man  can  devise  for  himself,  indicate  quite  clearly 
that  every  one  can  save  systematically  and  that  he  can  com- 
mence now. 

The  Productive  Use  of  Funds 

The  policy  of  saving  and  careful  scrutiny  of  expenditures, 
however  meritorious  in  itself  and  capable  of  practical  opera- 
tion, must  not  be  permitted  to  destroy  a  person's  financial  per- 
spective. Otherwise,  he  trudges  down  the  dusty  highways  of 
business  adding  dimes  and  nickels  to  his  store,  whereas  with 
perspective  he  might  have  amassed  a  notable  fortune.  What 
is  the  role  of  saving  in  our  scheme  of  personal  finance?  "I  do 
not  mean  to  argue — I  am  not  such  a  fool  as  to  argue — that  it 
was  by  mere  thrift  that  colossal  fortunes  have  been  accumu- 
lated," says  the  Earl  of  Rosebery,  in  speaking  upon  the  ques- 
tion which  has  just  been  raised;  "but  I  am  here  to  argue  my 
profound  faith  that  they  were  in  the  commencement  founded 
on  thrift  and  on  nothing  but  thrift,  and  that  when  by  thrift 
a  small  but  substantial  sum  was  accumulated,  it  was  so  utilized 
as  to  amount  to  these  enormous  fortunes." 

The  policy  of  saving  constitutes  merely  the  foundation  of 
our  scheme  of  finance,  the  training  school  in  which  the  char- 
acter is  to  be  forged  and  the  language  of  finance  learned. 
Upon  this  foundation  the  business  man's  conspicuous  gains 
are  to  be  made  through  the  productive  use  of  capital. 


Exercises 

The  attempt  to  introduce  thrift  into  your  affairs  must  not  disregard 
the  fact  that  its  real  foundation  is  earnings  and  earning  power. 
Question  No.  i  in  the  chart  thus  is  highly  significant.  Does  your 
showing,  in  your  opinion,  justify  20,  let  us  say,  as  a  grade? 

No.  2  raises  the  question  of  what  has  become  of  the  money  you 
earned.    Have  you  gone  through  the  world  sieve-like  or  do  you  now 


THRIFT  AS  A  WORKING  POLICY 


381 


have  substantial  accumulations?  Needless  to  say,  the  term  assets 
does  not  refer  to  money  only  but  rather  what  you  are  worth  all  told. 
Suppose  you  have  done  80  per  cent  as  well  as  it  appears  to  you,  all 
things  considered,  you  should;  then  your  grade  is  8o%x25  or  20. 

The  close  connection  between  thrift  and  readiness  for  opportunity 
has  been  emphasized  in  the  chapter.  How  do  you  rank  here,  on  the 
basis  of  15  for  full  preparedness? 

Do  you  appreciate  a  dollar  for  the  full  time,  labor,  and  "going 
•without"  that  it  should  represent? 

Are  you  wasteful  by  habit?  Are  you  wasteful  in  business  man- 
agement? Do  you  waste  time,  your  own  and  subordinates'?  Do 
you  waste  money?  Do  you  waste  material?  Do  you  waste  brain 
effort?  Do  you  use  your  intellect  on  the  most  important  things  or 
on  smaller  matters?  These  are  pretty  broad  questions.  Neverthe- 
less, survey  your  doings  and  if  perfect  check  in  15  credits! 

The  last  question.  No.  6,  emphasizes  balance,  "neither  a  miser  nor 
a  spendthrift  be."  Should  you  not  get  a  10  now,  there  is  a  chance  to 
do  so  later  on. 


Counts 

Grade 

1.  When    I    began    working    for    myself    my    time 

was  worth 

$ a  day.    After years  it  is  worth 

$ a  day. 

2.  My  total  assets,  the  results  of years'  work, 

are  This  entitles  me  to  a  grade  of 

3.  I  have  $ ready  money  available  for  a  good 

opportunity.    This  entitles  me  to  a  grade  of 

4.  Have  I  a   fair  appreciation  of  the  time,  labor, 

and  sacrifice  represented  by  a  dollar? 

5.  How  much  "thrift"  do  I  possess  in  the  saving  of 

(a)  time  wastes,  (b)  money  wastes,  (c)  labor 
wastes,    (d)    material    wastes,    (e)    thought 
wastes? 

6.  How  near  do  I  come  to  the  happy  mean  between 

penuriousness   and  profuseness? 

Total  Credits 

25 
25 
15 
10 

15 
10 

100 

Test  Chart  19.     Chart  for  Self-Grading  on  Saving  Money 


CHAPTER  XXI 

THE  ART  OF  INVESTING 

Money  can  beget  money,  and  its  offspring  can  beget  more, 
and  so  on. — Benjamin  Franklin. 

The  Business  Man  as  an  Investor 

The  business  man  in  using  his  capital  productively  can 
either  invest  in  other  men's  enterprises  or  finance  his  own. 
Let  us  discuss  the  investment  side  first,  although  it  is  often 
less  important  in  practice  than  financing  one's  own  enterprises. 

The  investor,  desiring  to  make  his  money  work  for  him, 
finds  such  openings  as  the  following  available : 

1.  Real  estate  mortgages 

2.  Loans  on  collateral 

3.  Savings  bank  deposits 

4.  Bonds 

5.  Preferred  stocks 

6.  Common  stocks 

Each  of  these  classes,  again,  contain  securities  of  a  wide 
variety.  They  may  be  issued  by  national  governments,  states, 
municipalities,  railroads,  public  service  corporations,  banks, 
manufacturing  and  mining  concerns,  or  any  other  of  the  count- 
less enterprises  seeking  funds;  in  grade  they  range  from  the 
wildcat  mining  certificates  scarcely  worth  the  paper  upon 
which  they  are  printed,  to  the  bonds  of  the  United  States 
Government,  a  premier  security. 

Qualities  of  an  Ideal  Investment 

The  task  of  selecting  from  this  wide  variety  the  appro- 
priate investment  will  be  simplified  if  attention  is  given  the 

382 


THE  ART  OF  INVESTING  383 

qualities  upon  which  investments  are  to  be  rated  in  desirability, 
viz.,  safety,  income,  marketability,  appreciation,  and  suit- 
ability. Judged  by  these  standards,  the  ideal  investment 
would  be  safe,  yield  a  high  rate  of  income,  command  a  market 
in  which  it  is  readily  convertible  into  cash,  preserve  a  mar- 
ket price  free  from  wide  fluctuations,  afford  good  prospects  of 
appreciating  in  value,  and  in  general  be  suited  to  its  holder's 
particular  requirements. 

Needless  to  say,  a  security  meeting  to  the  one  hundred 
per  cent  degree  all  these  tests  cannot  be  found,  hence  in  de- 
ciding upon  the  merits  of  various  issues  submitted  to  him  for 
purchase  the  investor  accepts  the  last  test  as  the  most  impor- 
tant and  rates  the  other  qualities  in  the  order  of  their  value 
to  him  personally.  According  to  recent  quotations  of  the 
New  York  Stock  Exchange  a  certain  copper  stock  sold  at  a 
yield  of  13.6  per  cent  and  a  railroad  bond  at  5.1  per  cent,  an 
industrial  stock  paying  no  dividends  sold  at  $92  per  share, 
and  a  railroad  stock  once  selling  at  $255  a  share  was  quoted 
under  $30.  Which  would  be  purchased?  That  depends 
largely  upon  who  purchased.  In  other  words,  personal  suit- 
ability is  too  often  the  important  factor  in  buying  securities. 

Sources  of  Information  as  to  Investments 

In  order  to  judge  whether  or  not  an  offered  investment 
meets  his  particular  needs,  the  investor  should  possess  sound 
information.  One  regrets  to  say,  however,  that  the  investor 
thus  qualified  is  the  exception,  and  it  is  also  unfortunately 
true  as  a  rule  that  the  less  one  has  to  invest  the  more  difficult 
it  is  to  secure  the  full  information  needed.  A  man  of  means 
has  friends  who  are  shrewd  judges  of  investments,  he  receives 
no  end  of  expert  advice  from  bankers,  bond  dealers,  and 
brokers,  and  he  has  a  full  assortment  from  which  to  select. 
A  man  whose  orders  are  limited  cannot  so  easily  secure  such 
attention.     Notwithstanding  this  is  the  case,  certain  reliable 


384 


PERSONAL  FINANCE 


sources  of  information  are  open  to  every  investor  and  he  can, 
if  he  will,  learn  a  great  deal  about  what  he  is  purchasing  and 
keep  in  touch  with  it  after  it  is  purchased.  Excellent  books 
are  published  on  the  subject  and  the  financial  papers  will  also 
be  found  very  useful. 

The  experience  of  investors,  both  successful  and  unsuccess- 
ful, seems  to  indicate,  when  analyzed,  certain  elementary 
principles  upon  which  good  results  depend.  These  will  now 
be  stated. 

I.     Diversifying  Investments 

Andrew  Carnegie's  advice  to  "put  all  your  eggs  in  one 
basket,  then  watch  that  basket,"  no  doubt  is  sound  in  so  far 
as  it  concerns  one's  specialty;  but  the  business  man  is  not  an 
investment  specialist  and  the  division  of  risk  through  diversi- 
fication of  purchases  is  accordingly  with  him  the  correct  rule 
of  procedure. 

The  accompanying  table,  prepared  with  the  needs  of  the 
business  man  in  view,  shows  how  such  diversification  may  be 
carried  out.  The  yields  on  these  issues  vary  from  time  to  time, 

A  BUSINESS  MAN'S  INVESTMENTS 


Proportionate 

Amount 

Type  of  Security 

5  per  cent 

Government  bonds 

5    "      " 

Municipal  bonds 

5    "      " 

Public  utility  bonds 

lO     "       " 

Convertible  bonds 

10     "       " 

Railroad  mortgage  bonds 

15    "      " 

Industrial  bonds 

10     "       " 

Copper  mining  bonds 

lO     "       " 

Railroad  preferred  stocks 

10      "         " 

Industrial  preferred  stocks 

lO      "         " 

Industrial  common  stocks 

5    "      " 

Railroad  common  stocks 

5    "      " 

Copper  stocks 

THE  ART   OF  INVESTING  385 

of  course,  in  accord  with  investment  conditions,  but  in  general, 
as  this  table  has  been  arranged,  these  yields  increase  from  top 
to  bottom.  Since  there  are  various  grades  of  issues  in  the  sub- 
groups of  this  list,  the  investor  should  secure  from  reliable 
financial  publications  and  institutions  the  more  detailed  infor- 
mation needed  at  the  time  of  purchasing. 

II.  Buying   Periods   and   Selling   Periods 

It  is  wise  to  shift  from  one  type  of  security  to  another 
as  prices  fluctuate.  A  comparison  of  the  various  grades  of 
securities  shows  that,  whereas  all  securities  fluctuate  in  price, 
certain  classes  fluctuate  much  less  violently  than  others.  Gilt- 
edge  bonds  depreciate  but  little  as  a  rule  during  a  panic 
whose  violence  causes  fluctuations  of  perhaps  $30  to  $50  per 
share  in  the  common  stocks  of  mining  and  industrial  com- 
panies. 

The  average  investor  pays  little  attention  to  these  price 
changes,  his  usual  practice  being  to  place  his  securities  in  a 
safe-deposit  box  until  they  mature  or  to  sell  them  when 
alarmed  over  the  business  outlook  or  in  need  of  money. 
Nevertheless,  the  plan  of  selling  out  during  a  bull  period  his 
lower  grade  securities  and  investing  the  proceeds  in  the  gilt- 
edge  division  and  during  the  following  period  of  depression 
reversing  the  process,  is  entirely  feasible  and  will  net  the 
investor  a  profit  well  worth  his  Consideration. 

III.  Do  Not  Speculate 

The  investor  who  with  discretion  changes  from  one  type 
of  security  to  another  when  prices  fluctuate  is  certain  to  profit. 
Yet  he  runs  the  risk  of  becoming  so  impressed  by  the  swing 
of  prices  that  the  sense  of  ownership  and  the  self-control 
which  accompanies  it  are  lost  and  he  becomes  an  out-and-out 
speculator. 

The  investor's  attitude  toward  his  securities  is  that  of 


386  PERSONAL  FINANCE 

ownership;  the  speculator  is  interested  primarily  in  taking 
advantage  of  price  fluctuations  and  he  cares  little  or  nothing 
for  permanent  ownership. 

An  abundance  of  experience  has  proved  this  statement 
true :  Speculation  is  the  business  of  persons  who  know  and  the 
amateur  who  tries  to  play  it  without  experience  and  careful 
study  will  lose. 

The  business  man  could  learn  to  speculate,  and  no  doubt 
successfully,  but  he  already  has  chosen  his  occupation  and 
changing  to  a  career  on  Wall  Street  would  scarcely  be  worth 
his  while.  Let  him  stick  to  his  own  line  and,  be  it  in  merchan- 
dising, railroading,  or  manufacturing,  as  an  expert  there  take 
shrewd  advantage  of  those  changes  which  yield  profits.  In 
the  field  of  the  skilled  speculator,  which  is  outside  his  specialty, 
let  him  maintain  self-control  and  refuse  to  stake  hard-earned 
money  on  his  ability  to  play  another  man's  game.  The  lamb 
in  Wall  Street  is  attempting  against  heavy  odds  to  play 
another  man's  game,  which  explains  why,  sooner  or  later,  he 
always  is  shorn. 

IV.     Slow  but  Sure  Investments 

The  itch  for  high  yields  has  cut  short  many  an  investor's 
career,  because  it  emphasizes  haste  at  the  expense  of  orderly 
progress.  Consider  a  compound  interest  at  four  per  cent : 
Ten  dollars  deposited  weekly  in  a  savings  bank  will  earn  at 
four  per  cent  $7.80  in  interest,  making  a  working  capital  of 
$527.80  at  the  beginning  of  the  second  year.  If  the  plan  is 
continued,  at  the  end  of  the  second  year  the  total  has  become 
$1,076.70;  at  the  end  of  the  fifth  year  $2,858.60;  at  the 
close  of  the  tenth  year  $6,336.50.  In  fifteen  years  this  steady 
saving  of  ten  dollars  a  week  amounts  to  $10,567.90;  in  twenty 
years  $15,715.90;  in  twenty-five  years  $21,979.20.  This  sum 
in  itself  even  though  no  further  deposits  were  made  would 
earn  $879.10  a  year.    Yet  forty  dollars  a  month  saved  would 


THE  ART  OF  INVESTING  387 

represent  no  serious  effort  on  the  part  of  great  numbers  of 
men. 

Supposing  the  diversified  investment  that  has  been  recom- 
mended yields  only  five  per  cent  and  that  nothing  additional  is 
gained  through  appreciation,  a  young  man  who  commences  at 
the  age  of  twenty-five  to  invest  $1,000  annually  will  build  up 
the  following  snug  fortune: 

He  will  be  worth  $13,210  at  the  age  of  35 

$22,000  40 

"  "  "  "  $34,720  "  "  "  "  45 

"  "  "  "  $50,110  "  "  "  "  50 

"  "  "  "  $69,960  "  "  "  "  55 

"  "  "  "  $94,840  "  "  "  "  60 

Theoretically,  get-rich-quick  methods  are  an  easy  road  to 
wealth.  Actually,  the  amateur  who  attempts  such  methods 
is  shorn  of  his  savings  while  the  less  spectacular  but  systematic 
investor  builds  up  a  comfortable  competence.  When  tempted 
to  *'take  a  flyer"  put  compound  interest  to  work! 

V.    Avoid  All  Get-Rich-Quick  Schemes 

The  post  office  department  estimates  that  for  a  long  time 
the  people  of  the  United  States  have  lost  by  fraudulent 
schemes  carried  on  through  the  mails  $100,000,000  annually. 
Worthless  real  estate  developments,  fake  oil  wells,  "world- 
beating"  inventions,  "bonanza"  mines,  and  the  like,  with 
gaudy  prospectuses  and  extravagant  claims,  have  duped  gen- 
erations of  credulous  investors.  In  their  attempts  to  get 
something  for  nothing  these  victims  of  the  get-rich-quick 
schemer,  it  is  needless  to  say,  have  ignored  sound  information, 
for  the  truth  as  it  is  never  stirs  the  fancy  of  such  gullible  peo- 
ple. They  are  the  dupes  in  reality  of  their  own  cupidity  and 
ignorance. 

The  more  experienced  the  investor  the  better  qualified  he 
is  to  deal  in  speculative  issues  such  as  industrial  common 
stocks,   junior   bonds,    securities   undergoing   reorganization, 


388  PERSONAL  FINANCE 

and  mining  stocks.  Yet  strange  as  it  may  seem  such  skilled 
investors  are  most  in  the  habit  of  buying  issues  of  high  grade, 
whereas  the  unskilled  are  found  putting  their  money  into  the 
most  risky  issues.  It  seems  to  be  a  case  of  fools  rushing  in 
where  wise  men  fear  to  tread.  Occasionally  the  rash  specula- 
tor will  quite  by  accident  make  a  considerable  winning,  but 
the  chances  are  hopelessly  against  him  and  in  the  long  run 
it  is  not  he  but  the  conservative  investor  who  amasses  a  com- 
petence. 


Exercises 

Some  Personal  Questions  as  to  Investing  Money 

George  Horace  Lorimer  in  "Letters  from  a  Self-Made  Merchant 
to  His  Son,"  says,  "Whenever  anyone  ofifers  to  let  you  in  on  the 
ground  floor,  take  an  elevator  to  the  roof  at  once." 

How  much  have  you  lost  so  far  by  investing  in  mines,  patents, 
rubber  plantations,  etc.?  Have  you  personally  known  anyone  who 
has  so  parted  with  his  money?  Have  you  personally  known  anyone 
who  made  a  profit  on  such  ventures? 

Is  it  wise  to  try  to  buy  when  the  market  is  low, and  sell  when  it  is 
high?  How  much  time  should  be  devoted  to  watching  the  markets 
for  this  purpose?  Would  a  man's  employer  be  favorably  impressed 
by  this  outside  interest?     Why  not? 

Enumerate  some  investments  that  are  safe.  Some  that  can  be 
readily  turned  into  cash.  How  high  a  rate  of  interest  or  of  dividends 
can  be  had  in  moderately  safe  securities?  What  is  the  objection  to 
putting  money  into  mortgages  on  real  estate?  Into  loans  on  col- 
lateral?    Into  investments  on  real  estate? 

In  Francis  Cooper's  work  on  "Financing  an  Enterprise"  a  chapter 
is  devoted  to  "The  Investor's  Questions."  These  questions  are  com- 
prehensive and  are  planned  to  cover  broadly  all  those  points  upon 
which  the  investor  has  a  right  to  be  informed.  Lack  of  space  pre- 
cludes their  inclusion  here,  but  it  may  be  said  that  anyone  reading 
that  chapter  before  investing  will  be  astonished  to  find  how  much  he 
should  know  and  how  little  he  has  been  told  of  the  essential  matters 
relating  to  the  proposed  investment. 

What  are  the  advantages  of  so-called  "slow  investments"? 


CHAPTER  XXII 

THE  FINANCING  OF  A  BUSINESS 

The  ideal  conditions  for  the  financing  of  an  enterprise  in- 
volve  a  good  proposition,  well  presented  at  the  right  time  to 
people  who  have  money  to  invest,  by  a  man  who  commands 
their  business  and  personal  confidence. — Francis  Cocper. 

Where  the  Real  Profits  Are 

The  chapters  which  have  preceded  deal  with  matters  which 
while  essential  are  often  merely  stepping  stones  toward  that 
all-important  matter  for  the  young  business  man,  i.e.,  the 
financing  of  a  business.  The  three  essentials  of  a  successful 
enterprise,  it  may  be  recalled,  are : 

1.  A  sound  undertaking. 

2.  Efficient  management. 

3.  Sufficient  capital. 

Having  schooled  himself  in  the  A  B  C's  of  finance — the 
careful  saving,  thrift,  and  scrutiny  of  expenditures — and  hav- 
ing learned  the  investor's  viewpoint  through  first-hand  ex- 
perience, the  young  business  man  now  turns  to  the  problem  of 
obtaining  sufficient  capital  with  a  considerably  increased  as- 
surance. 

Methods   of   Financing 

When  a  business  man  has  the  means  it  would  seem  natural 
for  him  to  finance  out  of  his  own  funds  any  enterprise  in  which 
he  is  interested.  Yet  cautious  and  conservative  business  men 
do  not  always  care  to  do  this.  A  man  may  believe  in  a  prop- 
osition, and  he  may  feel  sure  the  chances  are  all  in  its  favor. 
He  knows,  however,  that  the  best  laid  plans  of  men  and  mice 

389 


390  PERSONAL  FINANCE 

"gang  aft  aglee."  If  he  has  lost  some  of  the  energy  and  op- 
timism of  youth  he  will  see  risks  and  possibilities  of  failure, 
and  he  prefers  to  spread  the  risk,  even  though  in  so  doing  he 
may  also  spread  the  profits. 

The  young  man  on  the  other  hand  usually  prefers  to  take 
all  the  risk  and  retain  for  himself  all  the  possibiHties  of  profit. 
Usually  though  he  has  not  sufficient  capital  of  his  own  to  float 
his  enterprise  unless  he  is  content  to  begin  in  a  very  humble 
way  and  work  up  by  gradual  development  and  must  per- 
force offer  to  others  a  share  in  the  enterprise.  This  share 
may  take  the  form  of  a  partnership  or  a  stock  holding. 

The  three  methods  of  financing  a  business  most  commonly 
employed  are  as  follows : 

1.  Borrowing  at  interest. 

2.  Sharing  profits  among  partners. 

3.  Forming  a  corporation. 

Rockefeller  a  Shrewd  Borrower 

The  ability  which  John  D.  Rockefeller  has  displayed  in 
borrowing  money  accounts  for  not  a  little  of  his  remarkable 
financial  success.  In  the  early  days  when  Mr.  Rockefeller 
in  partnership  with  a  Mr.  Andrews  entered  into  the  refining 
of  oil,  the  firm's  capital  was  limited  and  the  rapid  growth  of 
the  business  found  the  two  partners  often  needing  money.  It 
was  the  senior  partner,  low-voiced,  soft-footed,  humble,  know- 
ing every  point  and  every  man's  business,  *'smooth,"  "a  savvy 
fellow,"  as  the  neighbors  described  him,  who  then  set  out  to 
borrow  and  rarely  if  ever  did  he  fail. 

"There  is  a  story  handed  down  in  Cleveland  from  the 
days  of  Clark  and  Rockefeller,  produce  merchants,  which  is 
illustrative  of  some  of  his  methods.  One  day  a  well-known 
and  rich  business  man  stepped  into. the  office  and  asked  for 
Mr.  Rockefeller.  He  was  out  and  Clark  met  the  visitor.  'Mr. 
Clark,'  he  said,  'you  may  tell  Mr.  Rockefeller,  when  he  comes 


THE  FINANCING  OF  A  BUSINESS  391 

in,  that  I  think  I  can  use  the  $io,cxxd  he  wants  to  invest  with 
me  for  your  firm.    I  have  thought  it  all  over.' 

"  'Good  God !'  cried  Clark,  Sve  don't  want  to  invest  $10,- 
000.    John  is  out  right  now  trying  to  borrow  $5,000  for  us.' 

"It  turned  out  that  to  prepare  him  for  a  proposition  to 
borrow  $5,000  Mr.  Rockefeller  had  told  the  gentleman  that 
he  and  Clark  wanted  to  invest  $10,000! 

"  *And  the  joke  of  it  is,'  said  Clark,  who  used  to  tell  the 
story,  'John  got  the  $5,000  even  after  I  had  let  the  cat  out  of 
the  bag.     Oh,  he  was  the  greatest  borrower  you  ever  saw !'  " 

Why  Borrow 

This  episode  concerning  Mr.  Rockefeller  evidently  in  its 
teachings  is  at  variance  with  the  old  idea  of  borrowing — the 
sad  result  of  misfortune,  of  improvidence  or  prodigality,  but 
in  no  case  a  legitimate  business  operation  in  which  both 
parties  benefit. 

This  point  of  view  is  well  expressed  by  Polonius  to  his 
son: 

Neither  a  lender  nor  a  borrower  be, 
For  loan  oft  loses  both  itself  and  friend, 
And  borrowing  dulls  the  edge  of  husbandry. 

This  advice  of  Polonius  to  his  son  is  eminently  sound  if 
the  young  man  was  extravagant  and  in  danger  of  expending 
his  money  without  adequate  returns.  Yet  this  is  not  the 
business  man's  attitude  toward  borrowing.  He  borrows  be- 
cause the  money  under  his  direction,  he  is  convinced,  will 
return  more  than  its  interest  charge.  Upon  this  basis  he 
appeals  to  possible  lenders  for  funds. 

Confidence  a  Business  Asset 

The  chief  test  of  one  of  the  world's  greatest  lenders,  J. 
Pierpont  Morgan,  was  that  described  by  him  shortly  before 
his  death :    'T  have  known  a  man  to  come  into  mv  office  and 


392  PERSONAL  FINANCE 

I  have  given  him  a  check  for  a  milhon  dollars,  and  I  knew 
he  had  not  a  cent  in  the  world."  In  other  words,  in  the 
estimation  of  the  greatest  banking  house  in  this  country,  char- 
acter was  sufficient  collateral  upon  which  to  loan  a  million 
dollars. 

Character  was  ranked  by  Mr,  Morgan  as  the  chief 
test  but,  needless  to  say,  it  is  not  the  only  test.  The  sum 
total  of  these  tests,  in  brief,  is  confidence — and  confidence  is 
something  which  can  be  cultivated  in  the  minds  of  those 
having  funds  and  can  be  developed  by  others  with  projects 
requiring  from  time  to  time  outside  funds.  In  other 
words,  credit  is  a  plant  whose  growth  can  be  nourished 
by  whoever  sets  about  it  properly.  The  detailed  ways  and 
means  are  exceedingly  numerous,  but  the  general  principle  is 
clear — if  you  wish  to  borrow  money,  develop  the  confidence 
in  the  minds  of  those  who  control  funds  that  their  money  will 
be  safe  in  your  hands  and  that  they  will  receive  a  satisfactory 
return  for  its  use. 

Borrowing  for  Business  Purposes 

Borrowing  money  to  finance  a  business  introduces  the  mat- 
ter of  regular  fixed  charges  for  interest,  with  the  attendant 
danger  of  foreclosure  and  loss  of  the  property  in  case  these 
are  not  met  when  due.  Yet  under  normal  conditions  it  per- 
mits the  original  parties  to  retain  their  control  of  the  enter- 
prise and  the  rate  charged  is  not  serious  compared  to  what 
the  profits  of  the  enterprise  should  be.  If  on  the  other  hand 
an  enterprise  ends  in  failure  the  loaning  plan  is  disastrous — 
far  more  so  than  if  the  money  were  secured  as  an  investment 
in  the  first  instance.  For  this  reason  many  business  men  with 
good  credit  and  well  able  to  borrow  all  the  funds  they  need, 
prefer  to  secure  part  of  the  capital  they  require  for  the  new 
enterprise  as  an  investment  and  not  as  a  loan.  In  this  way 
they  divide  up  the  risk.  They  do  not  look  for  failure  but  they 
recognize  its  possibility  in  any  enterprise  no  matter  how  sure 


THE  FINANCING  OF  A  BUSINESS 


393 


a  thing  it  may  seem.  Therefore  they  prefer  to  lessen  their 
own  risks  by  sharing  the  profits  to  be  made  rather  than  take 
the  chance  of  total  and  perhaps  disastrous  loss  in  case  of 
failure.  It  is  true  that  interest  on  money  borrowed  is  usually 
less  than  the  profits  of  a  successful  business  and  that  to  give 
a  share  in  the  business  for  the  loan  of  capital  often  seems  to 
promise  a  big  return  for  a  small  favor.  There  are  other  dan- 
gers connected  with  borrowing  besides  those  mentioned  above. 
Loans  and  interest  payments  have  a  tendency  to  become  due 
at  inconvenient  times;  or  if  left  to  run  after  they  become  due, 
may  be  called  unexpectedly.  If  not  met  they  may  be  used  as  a 
means  of  forcing  the  business  into  bankruptcy  and  buying  it 
for  a  mere  song.  As  a  matter  of  fact  loans  are  often  made 
to  the  owner  of  a  promising  enterprise  with  the  hope  or  expec- 
tation that  he  will  not  be  able  to  repay  the  amount  when  due. 
If  this  happens  the  lender  promptly  forecloses,  the  business  is 
forced  under  the  hammer  or  it  becomes  bankrupt,  and  he  buys 
it  at  a  fraction  of  its  real  value.  To  secure  properties  in  this 
way  is  considered  by  those  who  engage  in  the  practice  to  be 
smart  business  and  entirely  legitimate.  The  fact  that  it  is 
done  and  can  be  done  should  always  be  borne  in  mind  when 
loans  are  made.  The  agreement  should  provide  for  extensions 
of  time  when  necessary  so  that  the  borrower  may  have  the  op- 
portunity to  raise  funds  elsewhere.  In  this  way  the  first 
lender  can  be  repaid  if  he  insists  upon  calling  in  the  loan. 

Financing  By  Means  of  Partnership 

These  limitations  on  borrowing  cause  oftentimes  recourse 
to  moneyed  partners.  This  is  but  a  modification  of  the 
usual  plan  of  securing  money  as  an  investment  in  the 
enterprise — usually  in  the  form  of  stock  subscriptions — but 
it  has  some  special  advantages  and  disadvantages  of  its  own. 

A  very  important  point  to  be  considered  when  a  financing 
partner  is  to  be  taken  into  a  new  undertaking  is  the  fact  that 


394 


PERSONAL  FINANCE 


should  the  enterprise  not  reach  the  point  of  self-support  before 
its  funds  are  exhausted — a  contingency  that  frequently  occurs 
— the  conditions  are  not  favorable  for  securing  further  money. 
Under  such  circumstances,  each  partner  should,  of  course, 
contribute  pro  rata  according  to  his  interest,  but  in  practice  the 
original  owner  is  usually  unable  to  increase  his  investment  and 
it  not  uncommonly  happens  that  the  "financing"  partner  de- 
clines to  increase  his. 

Sometimes  the  moneyed  partner  refuses  because  he  thinks 
the  management  of  the  business  has  been  poor  and  that  there- 
fore the  "working"  partner,  who  is  responsible  for  this,  should 
bear  the  burden  of  securing  additional  funds.  At  other  times, 
he  declines  from  purely  selfish  reasons,  thinking  that  the  work- 
ing partner's  interests  are  sufficiently  large  to  force  him  to  pull 
the  enterprise  out  somehow  unaided.  On  rare  occasions  help 
is  refused  because  the  financing  partner  hopes  that  the  embar- 
rassment of  the  business  will  result  in  conditions  which  can 
be  made  to  serve  his  own  interests,  possibly  resulting  in  his 
acquisition  of  the  whole  enterprise. 

In  any  such  case,  the  working  partner  must  do  the  best  he 
can.  He  may  be  able  to  borrow,  or  he  may  have  to  make  very 
material  sacrifices  of  his  own  interests  to  obtain  the  needed 
funds.  In  such  case,  if  the  enterprise  is  successful,  he  will  be 
able  to  recoup  himself.  It  is,  however,  far  better  that  the  pos- 
sible need  of  more  funds  should  be  anticipated  and  provided 
for  in  advance  by  some  provision  of  the  partnership  agree- 
ment. It  is  better  still  to  avoid  the  contingency  by  the  incor- 
poration of  the  undertaking. 

Selection  of  a  Partner 

It  should  be  borne  in  mind  that  a  partner  has  all  the  rights 
in  the  business  that  the  original  owner  has  himself.  He  can 
interfere  in  the  management  of  the  enterprise,  run  it  into  debt, 
if  he  sees  fit,  or  make  trouble  in  many  other  ways. 


THE  FINANCING  OF  A  BUSINESS 


395 


All  this  is  of  no  importance  if  the  partner  is  known  to  be 
the  right  kind  of  a  man,  who  will  shoulder  his  part  of  any  bur- 
dens to  be  borne  and  who  can  be  depended  upon  to  co-operate 
when  needed  and  to  do  nothing  when  not  needed.  If,  how- 
ever, there  is  any  doubt  as  to  the  character  or  disposition  of  the 
prospective  partner,  this  close  alliance  should  be  avoided. 

A  man  must  be  a  good  judge  of  character  to  be  able  to 
select  the  right  kind  of  man  as  partner.  Two  of  the  ablest  men 
among  the  partners  of  the  banking  house  of  J.  P.  Morgan  were 
selected  by  the  international  banker  solely  because  they  ap- 
pealed to  him  as  business  men.  Henry  P.  Davison,  when  vice- 
president  of  a  New  York  bank  received  an  invitation  to  call 
on  Mr.  Morgan  at  his  private  house  at  three  o'clock  in  the 
afternoon.  He  had  met  Mr.  Morgan  on  two  or  three  occa- 
sions only  and  did  not  consider  himself  anything  more  than  a 
casual  acquaintance.  Promptly  at  three  in  the  afternoon  the 
young  banker  rang  the  bell  of  the  financier's  residence  and  a 
few  minutes  later  the  two  business  men  were  talking  in  the 
library.  Morgan  wasted  no  time  in  preliminaries :  "Are  you 
ready  to  become  my  partner  on  January  i  ?"  he  asked.  The 
query  nearly  took  Davison's  breath  away.  He  parried  in 
reply :  "Mr.  Morgan,  have  you  ever  fallen  from  an  eighteen- 
story  building?"  It  was  the  financier's  turn  to  be  bewildered. 
"No,"  he  replied,  "why  do  you  ask?"  "Well,  neither  have  I. 
But  I  thought  if  you  had  you  would  understand  how  I  feel." 
Then  Morgan  laughed  and  a  few  minutes  later  the  matter  was 
settled. 

The  Corporation 

The  partnership  is  the  old,  familiar  system  of  business  or- 
ganization, easily  formed,  as  easily  dissolved,  informal,  un- 
certain in  action,  and  frequently  unsafe.  Enterprises  of  large 
size  are  but  seldom  financed  under  the  partnership  form.  Its 
use  for  enterprises  of  any  size  is  of  doubtful  wisdom. 


396  PERSONAL  FINANCE 

The  corporation,  on  the  other  hand,  is  an  efficient  and 
widely  used  system  of  business  organization.  It  is  created  by 
a  charter,  granted  by  the  state  upon  appHcation  of  the  inter- 
ested parties.  The  corporation  so  created  is  for  all  practical 
purposes  an  individual,  carrying  on  business,  making  contracts 
and  suing  or  being  sued  in  its  own  name.  It  is  entirely  separate 
and  distinct  from  its  members  who  may  die  or  withdraw  with- 
out affecting  the  corporation.  It  is  subject  to  the  general  laws 
of  the  land  and  the  special  laws  of  the  state  just  as  an  indivi- 
dual. 

The  advantages  of  the  corporate  system  are  several.  The 
first  and  most  obvious  is  the  freedom  it  offers  from  the  lia- 
bility which  characterizes  the  partnership.  A  partner  is  liable 
for  all  debts  of  the  partnership.  In  a  corporation  a  stock- 
holder is  not  ordinarily  liable  for  any  of  its  debts.  A  purchaser 
may  acquire  a  single  share  or  a  hundred  shares  of  stock  in  a 
corporation  and — if  the  stock  is  full-paid — go  on  about  his 
business  with  the  full  assurance  that  he  cannot  lose  more  in 
that  enterprise  than  the  amount  of  money  paid  for  his  share. 
No  matter  what  happens  to  the  corporation  he  cannot  be  in- 
volved beyond  the  loss  of  his  investment. 

The  second  great  advantage  of  the  corporation  is  the  con- 
venience and  flexibility  of  its  arrangements.  The  smaller  in- 
vestor may  be  provided  for  equally  with  the  man  putting  in 
hundreds  of  thousands.  Each  has  his  proportionate  interest 
and  his  proportionate  rights.  Also,  under  the  corporate  system 
almost  any  desired  business  conditions  may  be  effectively  pro- 
vided for  and  preserved.  Its  adaptability  in  this  direction  is 
remarkable.  Enterprises  of  the  present  day  are  carried  on 
almost  uniformly  under  the  corporate  system. 

The  one  material  objection  urged  against  the  corporate 
system,  as  a  means  of  conducting  enterprises,  is  the  absolute 
control  which  is  exercised  by  the  majority  stockholders.  It 
must  be  admitted  that  this  objection  to  the  corporation  does 
exist  and  that  it  may  be  a  serious  one  unless  expressly  provided 


THE  FINANCING  OF  A  BUSINESS 


397 


against.  On  the  other  hand,  the  'same  objection  exists  to  any 
form  of  business  organization.  The  majority  must  and  always 
will  rule.  Their  absolute  power  may,  however,  be  so  modified 
in  the  corporation  by  provisions  for  minority  representation 
and  by  charter  and  by-law  limitations  on  the  power  of  the  ma- 
jority, that  its  objectionable  features  are  largely  or  wholly  re- 
moved. The  corporation  then  becomes  the  safest,  the  most 
effective  and  the  most  generally  desirable  form  of  business 
organization  known  to  the  industrial  world. 

Adequacy  of  Capital 

The  necessity  for  capital  in  the  development  of  a  new  busi- 
ness will  not  be  questioned.  A  sharp  difference  of  opinion 
is,  however,  likely  to  exist  as  to  the  amount  required.  Espe- 
cially with  young  or  inexperienced  men  the  almost  invariable 
tendency  in  calculating  the  necessary  expenditures  and  the 
probable  receipts  of  a  new  enterprise  is  to  seriously  minimize 
the  one  and  to  greatly  overestimate  the  other. 

It  is  a  simple  matter  to  take  pencil  and  pad,  sit  down,  figure 
out  the  necessary  expenses  of  the  new  undertaking,  add  a 
percentage  for  incidentals  and,  to  be  fair,  a  further  allowance 
for  overhead,  and  deem  the  matter  settled.  The  experienced 
business  man,  however,  knows  that  at  every  stage  and  step  of 
development  there  are  delays,  changes  of  original  plans,  un- 
expected requirements,  failures  of  expected  revenue,  and  along 
with  it  all,  endless  incidental  but  unavoidable  expenditures  that 
bring  the  sum  total  up  far  above  anything  that  would  at  first 
sight  seem  possible.  Because  of  this  inevitable  and  unconquer- 
able tendency  of  expenses  to  swell  far  beyond  the  expected 
limits  the  inexperienced  man  should  either  consult  some 
friendly  expert  familiar  with  the  particular  line  in  which  he 
proposes  to  embark,  or  otherwise  allow  a  liberal  percentage  for 
incidentals  and  operating  margin,  and  beyond  this  a  consider- 
able amount  for  the  unexpected. 


398  PERSONAL  FINANCE 

This  is  the  more  important  because  of  the  very  great  dif- 
ficulty of  raising  further  money  for  enterprises  when  the  or- 
iginal funds  are  exhausted  before  the  enterprise  reaches  the 
condition  of  self-support. 

When  an  enterprise  is  first  presented,  if  the  proposition 
and  conditions  are  favorable,  it  is  nearly  always  possible  to 
raise  the  amount  thought  necessary  for  its  purposes,  and  it  is 
a  measure  of  wise  precaution  to  secure  a  treasury  reserve  of 
cash  at  this  time  sufficient  to  carry  the  company  through  to 
success.  If  this  is  not  done  or  the  funds  provided  prove  to 
be  insufficient  and  are  exhausted  before  the  enterprise  has 
reached  the  point  of  self-support,  the  condition  is  peculiarly 
unfortunate.  The  failure  to  pull  through  is  hard  to  explain, 
the  enterprise  is  discredited,  and  the  whole  thing  is  looked 
upon  as  a  *'lame  duck"  if  not  a  complete  failure. 

Under  these  conditions,  to  secure  more  money  on  any  ordi- 
nary basis  is  almost  impossible,  and  if  it  is  accomplished,  the 
"carrying"  individual  or  syndicate  usually  demands,  and  per- 
force receives,  payment  out  of  all  proportion  to  the  amount 
of  the  investment. 

Such  a  situation  should  as  stated  be  avoided  by  a  sufficient 
provision  at  the  time  the  enterprise  is  launched  to  carry  it 
safely  through  to  the  point  to  be  attained.  If  the  amount 
required  for  this  cannot  be  obtained  at  the  time,  the  enterprise 
should  either  be  held  back  until  the  required  sum  can  be  se- 
cured, or  the  development  plans  be  so  modified  that  the  amount 
in  hand  will  suffice.    To  do  otherwise  is  to  invite  disaster. 

On  the  other  hand,  the  position  of  the  enterprise  which  has 
reached  a  point  of  self-support  and  moderate  returns,  but 
which  must  raise  more  capital  before  further  progress  can  be 
made,  while  not  exactly  favorable,  is  still  far  superior  to  that 
of  the  stranded  enterprise.  It  is  beyond  the  dead  line.  It 
has  life  and  vitality.  It  is  neither  a  suppliant  nor  a  forlorn 
hope.    The  risks  of  investment  in  it  are  minimized  and  there 


THE  FINANCING  OF  A  BUSINESS 


399 


is  a  certain  degree  of  attractiveness  about  it  that  makes  the 
raising  of  additional  capital  very  much  easier.  The  situation 
is  not  an  uncommon  one  and  the  ordinary  methods  of  securing 
capital  may,  as  a  rule,  be  used  with  success. 


Exercises 


The  financing  of  an  enterprise  involves  numerous  problems,  into 
the  details  of  which  it  is  interesting  for  a  prospective  manager  and 
proprietor  to  penetrate.  The  study  of  certain  of  the  books  listed  in 
Chapter  XXIX  will  supplement  excellently  the  necessarily  brief  dis- 
cussion contained  in  this  work  and  enable  the  young  business  man 
to  handle  the  financial  problems  of  his  business  with  a  surer  hand. 

The  problems  themselves  center  in  such  questions  as : 

Amount  of  Capital  Needed 

How  much  capital  is  needed  to  start  the  business? 
How  much  is  needed  for  working  capital? 

Borrowing 

What  sources  of  credit  have  I  ? 

How  much  capital  can  be  secured  from  these  sources? 

By  what  means  can  my  borrowing  capacity  be  increased? 

Partnership 

What  advantages  in  partnership?    What  disadvantages? 
Could  the  capital  required  be  secured  more  effectively  by 
taking  in  partners? 

Incorporation 

What  advantages  in  the  corporate   form  of  organization  ? 

What  disadvantages? 
To  whom  could  I  sell  stock  in  this  enterprise? 

Building  Up  the  Business 

Should  I  build  up  the  business  myself  clearly — learning  as 

I  go? 
Had  I  better  hire  others  to  manage  it  for  me? 
Can  I  afford  to  give  full  time  to  it? 
Is  it  better  to  consider  it  a  side-line? 


CHAPTER  XXIII 

THE  EXECUTIVE'S  LEGAL  PROBLEMS* 

Law  is,  after  all,  only  the  formulated  rules  of  human 
conduct,  a  code  of  procedure  and  interpretation  which  is 
the  outgrowth  of  the  daily  affairs  of  men. 

— Alfred   Bicknell. 

Help  versus  Hindrance 

The  financing  of  a  business  discussed  in  the  preceding 
chapters  concerns  vitally  the  executive's  future — whether  his 
enterprise  is  to  wither  into  nothingness  or  develop  into  the 
flourishing  concern  upon  which  his  ambitions  are  set.  The 
latter  result,  a  competent  business  man  so  much  desires  that 
he  spares  no  effort — disdains  no  assistance  which  will  aid  him 
to  reach  it,  and  gives  full  heed  to  every  possibility  of  danger 
which  might  defeat  his  end.  In  both  of  these  directions — aids 
and  safeguards — a  knowledge  of  business  law  will  help  him. 

The  law  sets  up  certain  standards  for  the  guidance  of  con- 
duct, as  the  executive  discovers,  adversely  or  beneficially,  again 
and  again.  Too  often,  unfortunately,  business  men  conceive 
the  law  to  be  something  of  an  arbitrary  nuisance,  a  source  of 
friction  and  a  hindrance  to  them  in  carrying  out  their  deal- 
ings. It  is  true  that  there  are  placed  upon  the  statutes  numer- 
ous laws  which  affect  business  unfortunately,  and  that  with 
respect  to  many  details  and  methods  of  court  procedure  the 
law's  workings  are  costly  and  cumbrous.  These  deservedly 
are  criticised  by  men  schooled  in  modem  methods  of  efficiency. 

Nevertheless,  business  men  must  recognize  in  fairness  that 
part  of  their  objections,  possibly  a  very  large  part,  toward 
certain  statutes  are  in  reality  not  directed  justifiably  at  the  law 

•Legal  portion   prepared  by   Messrs.    Conyngton   and   Shidle. 

400 


THE  EXECUTIVE'S  LEGAL  PROBLEMS  401 

itself  and  those  who  enforce  it,  but  at  those  responsible  orig- 
inally for  its  passage.  Moreover,  the  irritations  caused  them 
by  what  they  term  the  law's  arbitrariness  must  not  be  per- 
mitted to  obscure  the  very  great  benefits  secured  from  our  legal 
system. 

The  Law  of  the  Land 

Business  flourishes  only  where  law  prevails.  No  great 
business  development  is  possible  until  a  country  has  become 
civilized  enough  to  have  settled  laws  and  orderly  legal  pro- 
cedure. In  countries  like  Mexico  and  the  Balkan  States  no 
great  business  establishments  are  to  be  found  and  the  great 
resources  of  these  countries  are  not  developed,  or  they  are 
operated  by  foreign  capitalists  who  rely  for  protection  on  the 
strong  arm  of  their  own  land.  The  rule  of  each  man  for  him- 
self without  regard  to  the  just  claims  of  others  leads  inevitably 
to  savagery  and  stagnation. 

As  business  is  thus  dependent  on  the  existence  of  law  and 
order,  it  follows  that  the  greatest  business  development  is 
found  in  those  countries  where  there  are  established  laws  and 
settled  government,  which  can  be  counted  upon  to  operate  in 
the  same  general  way  at  all  times. 

In  our  own  country  we  are  fortunate  in  having  one  of  the 
most  advanced  systems  of  law  to  be  found  in  the  civilized 
world.  Its  beneficent  operation  has  always  been  ours  and 
like  the  air  we  breathe  or  the  water  we  drink  we  consider  it  a 
part  of  the  order  of  nature,  which  it  is  not.  All  we  enjoy 
of  personal  freedom  and  safety  of  life  and  security  of  prop- 
erty has  been  won  by  conflict,  courage,  and  sacrifice  on  the 
part  of  our  fathers.  The  so-called  natural  rights  to  life,  lib- 
erty and  the  pursuit  of  happiness,  are  not  found  in  a  state  of 
nature.  They  are  the  fruits  of  a  long,  painful  struggle  by  our 
forefathers  who  loved  liberty  and  self-expression.  When 
these  rights  were  won  they  were  embodied  in  our  system  of 


402  PERSONAL  FINANCE 

laws  and  government.  We  should  prize  all  these  more  if  we 
remembered  how  much  they  cost  and  how  bare  and  hard  our 
life  would  be  if  they  were  swept  away  and  each  man  had  to 
depend  on  his  own  arm  and  skill  to  protect  himself,  his  family, 
and  his  scanty  belongings  from  forces  of  fraud  and  aggres- 
sion. 

Relation  of  Law  to  Business 

A  business  man  should  realize  that  while  our  system  of 
law  regulates  business  in  manifold  directions,  his  industrial 
existence  depends  upon  the  fact  that  we  live  in  a  country  of 
orderly  government,  and  that  the  laws  for  the  protection  of 
property  and  the  enforcement  of  contracts  rarely  fail  to  give 
the  security  to  him  that  they  should. 

Most  business  operations  are  made  possible  only  by 
the  fact  that  we  live  under  settled  government  according  to 
which  the  rights  of  each  party  to  a  business  transaction  are 
defined  and  can  be  enforced.  The  object  of  all  law  is  to  define 
rights  and  to  provide  a  remedy  when  those  rights  are  in- 
fringed. In  all  of  the  law,  the  primary  purpose  is  to  do  jus- 
tice, to  protect  the  man  who  is  trying  to  do  business  fairly, 
and  to  check  and  restrain  those  who  violate  the  law  and  who 
refuse  to  observe  their  contracts  and  obligations.  In  prac- 
tice it  is  too  often  cumbersome  and  costly,  but  its  theory  is 
sound  and  its  aims  are  the  highest.  Because  it  exists  and  can 
be  invoked  when  necessary  we  are  able  to  do  business  and 
collect  what  is  owing  to  us  and  are  protected  from  theft, 
injustice,  and  extortion.  Our  business  goes  on  day  after  day, 
and  robbery,  fraud,  and  blackmail  are  exceptional.  Most 
business  men  do  business  squarely  and  neither  do  nor  suffer 
wrong  and  rarely  have  anything  to  do  with  the  courts.  It  is 
to  be  remembered  that  for  one  case  where  a  man  has  to 
enforce  his  rights  through  the  somewhat  tedious  and  costly 
procedure  of  our  courts,  there  are  nine  hundred  and  ninety- 


THE  EXECUTIVE'S  LEGAL  PROBLEMS       403 

nine  cases  where  those  same  rights  are  enforced  merely  by 
the  fact  that  the  law  exists,  so  that  if  the  contract  were  broken, 
or  the  right  denied,  the  injured  party  could  have  recourse  to 
the  law. 

The  Law  of  Contracts 

Certain  parts  of  the  law  of  the  land  so  particularly  affect 
business  and  business  operations  that  every  man  who  en- 
gages in  business  must  have  clear  ideas  on  these  subjects. 

For  example,  the  law  of  contracts  enters  into  every  day's 
work.  In  fact,  the  major  part  of  many  businesses  consists  of 
making  and  fulfilling  contracts.  Notwithstanding  this,  it  is 
strange  how  many  otherwise  intelligent  business  men  are  not 
clear  on  the  elementary  principles  of  contracts.  To  make 
a  contract  binding,  certain  things  are  requisite.  Some  con- 
tracts must  always  be  in  writing.  Some  other  contracts  will 
be  implied  without  the  parties  saying  anything  about  coming 
to  an  understanding  or  making  an  agreement. 

An  interesting  case  which  came  up  a  short  time  ago  in- 
volving a  prominent  New  York  real  estate  dealer,  illustrates 
well  how  a  knowledge  of  business  law  may  save  the  costs  of 
expensive  and  needless  litigation. 

The  New  York  dealer  offered  by  letter  a  city  lot  to  a  client 
in  Hot  Springs,  Arkansas,  on  January  30th.  On  February 
7th,  the  client  wrote  accepting  the  offer  on  the  terms  proposed. 
On  the  same  day,  owing  to  changed  real  estate  conditions,  the 
dealer  wrote  to  Hot  Springs  withdrawing  his  offer.  The  cli- 
ent's acceptance  reached  New  York  on  February  9th.  Tlie 
Hot  Springs  man  claimed  that  the  dealer  must  fulfill  his  or- 
iginal offer  because  the  acceptance  had  been  sent  before  the 
letter  of  withdrawal  was  received. 

His  claim  was  upheld  by  the  court  on  the  ground  that  *'an 
offer  made  by  letter  which  is  to  be  answered  in  that  way  cannot 
be  withdrawn  unless  the  withdrawal  reaches  the  party  to  whom 


404  PERSONAL  FINANCE 

it  is  addressed  before  he  has  accepted."  A  famiHarity  with 
the  fundamentals  of  business  law  would  have  saved  this  real 
estate  man  both  money  and  time. 

Another  point  on  which  business  men  are  apt  to  be  care- 
less is  the  necessity  of  being  able  to  prove  contracts  so  that  in 
event  of  any  subsequent  disagreement  it  is  possible  to  show 
exactly  what  the  real  agreement  was.  To  enforce  a  right  in 
court,  evidence  is  necessary.  Many,  many  times  good  cases  are 
lost  because  the  injured  party  cannot  prove  what  he  knows  is 
true.  A  business  man  should  know  exactly  what  evidence  is 
required  for  any  contract  he  makes. 

Again,  some  contracts  are  illegal  and  cannot  be  enforced. 
In  most  cases  this  does  not  necessarily  mean  that  those  making 
the  contract  are  liable  to  any  penalty  or  that  there  is  anything 
criminal  in  the  contracts,  but  for  reasons  of  public  policy  the 
courts  will  not  enforce  them,  but  will  leave  the  party  to  such 
an  agreement  without  any  remedy. 

Again,  some  contracts  can  be  enforced  according  to  their 
terms  and  the  parties  who  make  them  must  perform  them 
specifically.  In  other  cases,  when  a  party  refuses  to  perform 
his  part,  the  only  remedy  is  to  sue  for  money  damages  for 
the  breach  of  contract. 

The  contract  of  sale  is  such  a  common  one  that  at  the 
present  time  business  men  are  trying  to  secure  the  adoption  of 
a  uniform  law  concerning  it  in  every  state  of  the  Union.  Such 
a  law  has  already  been  adopted  in  about  fifteen  states.  In 
those  states  where  it  has  not  been  adopted  the  same  general 
principles  prevail.  It  is  obvious  that  the  business  man  should 
know  by  heart  the  essential  features  of  the  law  governing 
contracts  of  sale. 

The  Law  of  Agency 

Another  matter  that  continually  comes  up  in  business  is 
the  law  of  aeencv.     Most  men  act  at  times  as  agents  for 


THE  EXECUTIVE'S  LEGAL  PROBLEMS 


405 


others.  At  other  times  they  themselves  will  deal  through 
agents  who  represent  them  and  again  at  other  times  they  will 
deal  with  agents  representing  other  parties.  This  is  such  a 
common  relationship  that  every  business  man  should  know 
just  what  are  the  rights  and  powers,  and  duties,  and  respon- 
sibihties  of  agency. 

Business  Organization 

Again,  there  is  the  matter  of  business  organization.  Part- 
nerships are  not  used  as  much  as  they  were  formerly,  but  at 
some  time  or  other  almost  every  person  is  involved  in  some 
sort  of  partnership  relation  with  other  people  and  his  lia- 
bility may  be  very  serious.  He  should  know  enough  to  avoid 
such  liabilities  unless  he  really  intends  to  "shoulder 
them." 

At  this  time  most  of  the  important  business  of  the  world  is 
done  under  the  corporate  form  and  this  makes  a  knowledge 
of  corporate  procedure  and  corporate  management  and  the  way 
in  which  corporations  do  business  an  essential  feature  of  a 
business  man's  education. 

In  all  these  matters  there  is  variation  between  the  de- 
cisions of  the  courts  in  the  different  states  and  between  the 
statute  laws  of  the  different  states,  and  the  finer  distinctions 
are  not  mastered  even  by  skilful  lawyers.  The  difference 
between  the  lawyer  and  the  business  man  is  often  only  this, 
that  the  lawyer  knows  how  to  look  up  the  law  he  wants 
to  know. 

But  it  is  entirely  possible  for  an  intelligent  business 
man  to  secure  a  working  knowledge  of  the  broad  prin- 
ciples on  which  all  these  laws,  statutes,  and  decisions  are 
founded  and  the  business  man  who  has  this  general  knowl- 
edge of  legal  principles  and  the  desire  to  do  the  fair  and 
right  thing  in  all  his  business  relations  will  rarely  get  into 
trouble  with  the  law. 


4o6  PERSONAL  FINANCE 

The  Law  Relating  to  Your  Own  Line  of  Business 

In  addition  to  a  general  knowledge  of  law  as  it  afiFects 
business  contracts  and  business  operations,  the  practical  busi- 
ness man  should  have  a  special  knowledge  of  law  as  it  affects 
his  own  particular  business.  A  real  estate  man  should  be 
better  versed  in  the  law  of  real  estate  than  the  average  law- 
yer; an  insurance  man  should  likewise  know  more  of  the  law 
of  insurance  than  the  average  lawyer;  a  manufacturer  should 
know  more  about  factory  legislation  and  the  laws  regulating 
employment  than  does  the  ordinary  attorney. 

Every  man  should  know  in  a  general  way  the  prmciple  of 
law  and  judicial  procedure  and  in  addition  he  should  know 
thoroughly  the  law  that  relates  to  his  own  special  business. 

Wherein  the  Law  is  Lacking — Procedure  Slow 

In  shaping  one's  business  conduct  it  is  necessary  to  know 
wherein  our  laws  are  deficient.  Perhaps  the  greatest  defect 
in  our  system  of  law  is  that  the  attempt  to  enforce  rights  by 
legal  procedure  or  suit  is  so  slow  and  so  costly.  It  is  true 
that  in  most  cases  business  difficulties  can  be  settled  by  judi- 
cious negotiation  without  suit,  but  there  are  times  when  almost 
every  business  man  is  forced  to  go  to  law  to  vindicate  his 
rights.  In  such  case  the  probabilities  are  that  he  will  waste 
a  great  deal  of  time,  spend  a  good  deal  of  money,  and  possibly 
at  the  end  fail  to  get  the  justice  which  he  seeks.  The  jury 
system  has  its  merits,  but  it  is  hard  to  get  twelve  men  to 
agjee  on  anything,  and  the  compromise  of  opinions  that 
usually  results  is  not  always  satisfactory. 

Complexity 

Another  defect  of  our  law  is  that  it  is  too  complex  and 
much  of  it  is  hard  to  understand.  We  have  a  multitude  of 
state  legislatures  grinding  out  new  laws  and  when  a  business 
house  is  doing  business  all  over  the  United  States  it  is  very 


THE  EXECUTIVE'S  LEGAL  PROBLEMS 


407 


difficult  to  avoid  legal  entanglements  in  some  of  the  states.  In 
the  time  of  the  Revolution,  there  was  so  little  interstate  com- 
merce that  it  was  not  anticipated  how  great  the  inconvenience 
would  be  of  having  a  multitude  of  diverse  state  laws.  This 
defect  is  being  remedied  to  some  considerable  extent  at  the 
present  time  by  the  passage  of  uniform  state  laws  on  various 
business  subjects.  The  Uniform  Negotiable  Instruments  Law 
has  been  adopted  by  all  but  a  few  states.  Uniform  sales  acts 
have  also  been  adopted  in  a  number  of  the  states.  Other  sys- 
tems of  uniform  law  are  almost  sure  to  be  adopted  before  many 
years.  Apart  from  this,  there  is  a  general  tendency  to  make 
state  laws  more  uniform  on  those  subjects  in  which  business 
is  principally  interested. 

Variety  of  Sources 

Another  difficulty  with  our  system  of  law  is  the  variety  of 
sources  from  which  it  comes.  An  ordinary  citizen  is  subject 
to  the  following  laws : 

The  Constitution  of  the  United  States 

The  laws  of  Congress  authorized  by  the  Constitution 

The  separate  state  constitutions 

The  acts  of  the  separate  state  legislatures 

The  ordinances  of  the  city  council  or  board  of  aldermen 

In  addition  to  these,  there  are  various  commissions,  boards, 
and  bureaus  that  have  power  to  make  regulations  affecting 
traffic,  schools,  public  health,  building,  employment,  and  many 
other  things  that  from  time  to  time  have  been  added  and 
will  be  added  as  our  population  increases  and  business  develops. 

How  to  Secure  a  Knowledge  of  Law 

It  is  possible  to  take  courses  of  study  that  will  give  the 
business  man  the  knowledge  of  law  he  needs.  Nearly  all  busi- 
ness schools  have  some  course  in  commercial  law.     In  many 


4o8  PERSONAL  FINANCE 

cases,  however,  such  a  course  is  very  limited  and  goes  only  to 
a  few  elementary  principles.  In  some  of  the  better  evening 
schools  and  in  the  extension  courses  of  the  universities,  it  is 
possible  to  go  further  into  this  subject. 

The  other  method  of  acquiring  an  adequate  knowledge  of 
business  law  is  to  read  books.  There  are  good  general  texts 
published  on  the  laws  of  business.  The  reader  should  dis- 
criminate between  those  larger  books  which  are  intended  to 
be  used  only  as  works  of  reference,  that  is,  to  be  at  hand  for 
ready  consultation  in  case  of  any  particular  trouble  and  those 
other  books  which  are  intended  to  give  a  broad,  general  knowl- 
edge of  the  principles  of  law.  This  difference  between  books 
is  a  marked  one  and  it  should  be  remembered  that  even  the 
best  educated  lawyers  cannot  possibly  carry  in  their  heads  a 
knowledge  of  the  manifold  details  of  our  modern  law.  Some- 
body has  said  that  the  principal  art  of  the  lawyer  is  in 
knowing  where  to  find  things.  The  same  may  be  true  of  the 
business  man.  The  man  who  wishes  to  have  an  adequate 
knowledge  of  law  should  read  a  good  text-book  on  the  general 
principles  of  law.  Then  if  he  has  any  particular  specialty, 
such  as  insurance  or  real  estate,  he  should  take  up  some  text- 
book on  that  particular  subject.  It  might  be  well  for  almost 
any  modern  business  man  to  read  up  specially  on  the  law  of 
corporations.  Next,  not  for  reading  purposes,  but  merely  for 
purposes  of  consultation  and  reference,  he  should  have  certain 
law  books  at  hand.  The  extent  to  which  this  should  be  carried 
depends  upon  how  large  his  establishment  is  and  how  far  it  is 
worth  while  to  depend  on  his  individual  efforts  before  consult- 
ing a  lawyer.  The  larger  encyclopedias  of  law  will  be  found 
confusing  because  of  the  extent  to  which  they  go  into  detail. 

How  to  Avoid  Litigation 

As  has  been  said,  litigation  is  to  be  avoided.  It  is  gener- 
ally a  last  resort,  and  only  to  be  utilized  when  all  means  of 


THE  EXECUTIVE'S  LEGAL  PROBLEMS 


409 


settling  the  difficulty  otherwise  have  been  exhausted.  To 
avoid  litigation  a  person  should  have  a  good  general  knowl- 
edge of  the  law.  Then  he  should  be  very  careful  to  reduce 
all  contracts  to  writing  and  to  have  so  far  as  is  possible  ac- 
curate written  records  of  everything  that  is  done  in  connec- 
tion with  his  business.  It  should  not  be  necessary  to  say  that 
every  man  should  deal  fairly  with  his  employees  and  with 
his  customers  and  with  those  from  whom  he  purchases.  When 
it  is  recognized  that  a  man  or  a  firm,  or  a  corporation,  tries 
to  deal  fairly  with  all,  it  will  be  found  that  it  is  generally  easy 
to  adjust  or  compromise  any  difficulty.  Further,  if  in  the 
course  of  business  it  is  found  that  some  people  are  hard  to 
deal  with,  it  will  be  worth  making  some  sacrifice  to  keep  away 
from  them  altogether.  A  man  who  has  earned  the  reputa- 
tion of  being  "difficult"  to  deal  with  is  a  man  whom  it  is  well 
to  avoid. 

The  Lawyer  and  the  Business  Man 

It  would  be  highly  desirable  to  go  through  life  and  have 
nothing  to  do  with  lawyers  or  doctors  or  dentists,  but  it  does 
not  seem  possible  as  things  are.  Every  business  man  should 
have  a  lawyer  in  whom  he  has  confidence.  Business  men 
sometimes  employ  a  lawyer  on  the  principle  of  fighting  the 
devil  with  fire,  or  setting  a  thief  to  catch  a  thief.  In  the  long 
run  it  will  be  more  satisfactory  and  profitable  to  employ  a 
fair-minded,  honorable  lawyer  with  whom  your  relations  can 
be  both  businesslike  and  friendly.  He  will  look  to  your  inter- 
ests and  keep  you  out  of  litigation  wherever  it  is  possible. 
There  is  some  difficulty  in  finding  the  right  lawyer,  but  it  is 
worth  while  to  go  to  some  trouble  and  have  a  counselor  who 
will  be  both  friend  and  advisor.  Many  lawyers  are  excellent 
business  men  as  well  as  excellent  lawyers  and  can  give 
valuable  advice  in  many  matters  that  are  not  strictly 
legal. 


4IO  PERSONAL  FINANCE 

Lawyer's  Fees 

As  a  knowledge  of  physiology  does  not  enable  the  layman 
to  prescribe  remedies  for  himself  in  times  of  sickness,  but  does 
teach  him  the  necessity  of  calling  in  a  physician  in  certain  con- 
tingencies, so  will  some  knowledge  of  business  law  serve  to 
indicate  when  the  services  of  a  competent  lawyer  are  needed. 
By  realizing  before  it  is  too  late  the  function  of  a  lawyer,  many 
times  the  amount  of  his  fee  may  be  saved.  "It  should  always 
be  remembered  that  a  lawyer  should  be  employed  not  to  con- 
duct litigation  but  to  avoid  litigation.  Litigation,  generally 
speaking,  is  like  war,  a  destructive  and  unsatisfactory  expedi- 
ent." 

"In  employing  an  attorney  it  is  best  to  be  entirely  frank 
with  him.  The  contract  which  the  client  is  about  to  make 
is  for  legal  service  for  which  he  expects  to  pay.  It  is  not 
possible  to  have  an  established  market  price  for  legal  services 
as  is  the  case  with  more  material  commodities.  Some  lawyers 
presume  on  this  fact  and  charge  extortionate  fees.  In  the 
same  city  the  fees  of  different  practitioners  may  be  as  far 
apart  as  $ioo  and  $i,ooo  for  the  same  services.  There  may 
be  as  much  difference  in  the  value  of  the  services  secured 
but  this  is  not  always  the  case.  When  engaging  an  attorney, 
either  as  permanent  counsel  or  for  a  single  matter  of  busi- 
ness, it  will  save  trouble  and  misunderstanding  to  ask  him 
frankly  what  he  means  to  charge. 

"Some  services,  such  as  incorporating  a  company,  draft- 
ing a  will,  and  the  like,  can  be  estimated  positively  and  a 
definite  price  can  be  given.  In  other  matters,  as  for  the  con- 
duct of  a  case,  it  is  not  possible  to  state  definitely  in  advance 
what  the  cost  will  be.  Almost  every  lawyer  has  a  certain 
time  rate,  however,  and  grades  his  prices  on  the  amount  of 
time  that  is  required.  Usually,  time  spent  in  consultation  or 
in  the  lawyer's  office  will  have  one  price,  and  time  spent  in 
the  trial  or  the  argument  of  the  case  will  be  rated  at  a  much 


THE  EXECUTIVE'S  LEGAL  PROBLEMS 


411 


I 


higher  price.  If  a  lawyer  states  what  he  charges  for  his  time 
in  preparing  a  case  and  what  he  will  charge  when  on  trial, 
it  is  possible  to  get  some  rough  idea  of  what  the  proposed 
htigation  is  likely  to  cost. 

"A  good  plan  is  to  arrange  for  a  yearly  consultation  fee, 
which  gives  the  privilege  of  consulting  on  any  matters  which 
come  up.  Then  it  should  be  understood  that  for  actual  legal 
work,  negotiating,  drawing  contracts,  or  conducting  litiga- 
tion, regular  prices  are  to  be  charged. 

"It  is  to  be  borne  in  mind  that  in  this  discussion  of  law- 
yers' compensation,  the  prices  paid  specialists  or  famous  trial 
lawyers,  or  men  who  work  for  wealthy  clients  and  wealthy 
corporations,  are  not  considered.  Usually  these  charge  all 
that  the  traffic  will  bear  and  sometimes  more.  Their  serv- 
ices are  luxuries  which  cannot  be  afforded  by  the  average 
business  man."* 

The  Rules  of  Finance 

This  discussion  of  business  law  concludes  our  survey  of 
the  executive's  problems  of  personal  finance.  The  preceding 
chapters  have  outlined  the  essential  features  of  an  enterprise; 
have  shown  how,  having  laid  his  foundations  solidly  in  thrift, 
the  executive  can  secure  funds  ample  for  the  financing  of  his 
enterprise;  and  have  presented  suggestions  on  how  properly 
to  safeguard  one's  property  and  business  transactions  through 
a  knowledge  of  the  law. 

The  management  of  one's  affairs  in  such  a  manner  that  the 
value  of  his  possessions  constantly  increases,  is  an  avenue  to 
business  power  in  this  age  of  capital  whose  importance  few 
will  question.  The  discussion  of  personal  finance  of  the  pre- 
ceding chapters  is  well  ended  by  the  following  matter-of-fact 
rules  of  financing  as  presented  by  William  H.  Lough,  in  his 
"Business  Finance." 


'Taken   by  permission  from  "Business  Law,"  by  Conyngtoa. 


412  PERSONAL  FINANCE 

Elementary  Rules  of  Financing 

"i.  Study  and  utilize  all  sources  of  capital  including 
earning  power  and  credit. 

"2.  Do  not  be  afraid  to  borrow  for  legitimate  business 
development  when  you  can  earn  profits  and  repay 
the  loan  when  due. 

'*5.  Do  not  dissipate  capital  on  side  lines  and  outside  in- 
vestments. 

"4.  Systematically  accumulate  assets,  both  tangible  and 
intangible. 

''5.  Always  keep  available,  sufficient  cash  and  convertible 
assets  to  meet  emergencies  and  to  seize  special 
opportunities. 

"6.  Use  income  sparingly  for  living  expenses  and  pleas- 
ure, but  freely  for  business  maintenance  and  devel- 
opment. 

"7.  Use  foresight — which  is  the  cardinal  virtue  in  all 
financial  operations;  make  budgets  to  govern  all 
expenditures. 

"These  are  the  prudent,  indisputable  rules  for  sensible 
financing,"  concludes  Mr.  Lough.  "They  have  been  preached 
and  proved  over  and  over  again  for  many  centuries  past.  The 
wisdom  which  these  homely  rules  embody  applies  just  as 
truly  to  the  business  of  the  Standard  Oil  Company  and  the 
United  States  Steel  Corporation  as  to  the  affiairs  of  John 
Smith.  A  man  who  can  grasp  these  principles,  hold  them 
continually  before  his  eyes,  and  apply  them  intelligently,  is 
bound  to  handle  his  finances  wisely  both  in  his  business  and 
in  his  private  life." 


Law  Books  for  Business  Men 

A  business  man's  library  should  contain  first  of  all  some  text-books 
on  business  law,  written  in  accurate  but  non-technical  language.     It 


THE  EXECUTIVE'S  LEGAL  PROBLEMS 


413 


might  be  well  to  add  to  these  some  good  business  text  on  corporation 
law  of  which  there  are  a  number  published. 

In  addition,  a  business  man's  library  should  contain  any  manual 
that  may  be  printed  containing  the  corporation  laws  of  his  own  state. 
It  should  also  contain  the  state  statutes  which  relate  to  his  own  par- 
ticular business.  An  insurance  man  would  want  the  statutes  relating 
to  insurance;  a  manufacturer  the  factory  legislation  and  all  laws  re- 
lating to  employer's  liability.  A  man  engaged  in  railroading  or  any 
public  service  would  require  the  statutes  regulating  that.  A  credit 
manager  would  require  to  have  copies  of  all  laws  relating  to  the  col- 
lection of  debts  in  the  several  states.  He  would  also  need  a  full  text 
on  the  workings  of  the  bankruptcy  laws. 

The  general  statutes  of  the  state  may  usually  be  had  in  one  or  two 
large  volumes  with  supplementary  small  volumes  containing  each 
subsequent  year's  laws.  It  requires  some  skill  to  accurately  find  what 
is  the  law  in  force  on  any  subject  and  the  letter  of  the  statutes  is 
affected  by  the  decisions  of  the  courts  so  that  a  layman  is  liable  to 
make  serious  mistakes  in  looking  up  statutes. 

An  encyclopedia  of  law  is  likewise  not  helpful  to  a  layman.  He  is 
lost  in  a  multitude  of  fine  distinctions  and  a  maze  of  apparently  con- 
flicting decisions. 

At  times  it  may  pay  a  layman  to  buy  a  legal  text  on  some  special 
subject,  as  the  income  tax,  conditional  sales,  administering  an  estate, 
mechanics  and  material  liens,  patents  and  trade-marks,  and  the  like. 
In  all  such  cases,  try  to  get  a  work  written  in  non-technical  style  for 
the  use  of  business  men. 

It  is  always  to  be  borne  in  mind  that  the  object  of  legal  books  is 
not  to  supersede  the  necessity  of  employing  a  lawyer  but  to  enable 
you  to  know  when  you  do  need  a  lawyer  and  to  lead  you  to  call  in  a 
lawyer  when  needed  which  is  usually  to  prevent  trouble,  not  to  try  to 
cure  it  when  it  is  too  late. 


PART  VIII 
A  MAN  AMONG  MEN 

The  new  management  employs  not  only  science  but  hu- 
manity, and  by  humanity  I  do  not  mean  merely  or  chiefly 
sympathy  but  rather  a  larger  thing,  the  recognition  that  all 
men,  regardless  of  race,  origin  or  experience,  have  powers 
for  greater  things  than  have  been  believed. — Ida  M.  Tarbell. 

Man  efficiency  is  today  of  far  greater  importance  than  the 
further  development  of  machine  efficiency. — James  Logan, 
General  Manager,  United  States  Envelope  Company. 

Learn  to  work  with  your  fellows.  It  is  not  enough  that  you 
should  tolerate  them  and  avoid  wronging  them.  It  is  not 
enough  that  you  should  mind  your  own  business  and  be  self- 
supporting.  Civilisation  has  been  created  and  is  carried  on 
by  teatnr-work.  Get  into  the  game.  Take  your  part  in  the 
great  collective  struggle  to  make  life  more  worth  while. — 
Professor  Franklin  H.  Giddings. 


CHAPTER  XXIV 

TEAM-WORK, 

//  /  had  not  been  able  to  get  along  with  people  I  would  not 
have  been  able  to  get  on  in  this  world. — Lord  Kitchener. 

Business  Today  Beyond  the  One-Man  Stage 

The  business  man  who  renders  himself  effective  in  all 
the  phases  of  personal  management  hitherto  discussed  thereby 
completes  successive  stages  in  a  conquering  offensive.  Even 
so,  full  victory  may  yet  be  denied  him.  His  final  test,  which 
must  be  passed  if  he  is  to  achieve  notable  rank  in  business, 
can  be  well  set  before  us  through  an  incident  drawn  from  the 
early  career  of  the  late  Mr.  Frank  Woolworth,  the  chain  store 
magnate. 

It  was  in  1886,  that  Mr.  Woolworth,  having  demonstrated 
in  a  small  way  up-state  the  feasibility  of  the  five-and-ten-cent 
chain  stores,  opened  a  tiny  office  in  New  York  at  104  Cham- 
bers Street,  at  $25  a  month  rent.  Here  he  worked  almost 
day  and  night,  personally  answering  his  correspondence,  mak- 
ing leases  for  the  various  promising  locations  he  had  investi- 
gated, buying  for  all  his  stores,  and  doing  all  his  own  book- 
keeping. But  these  overstrenuous  efforts  soon  told  upon  his 
health.  Although  he  was  a  large-framed  man  of  above-average 
height,  his  weight  at  the  time  he  was  running  the  New  York 
office  single-handed  fell  off  to  135  pounds,  and  an  attack  of 
typhoid  fever  with  which  he  was  soon  stricken  rendered  him 
for  eight  weeks  unable  to  attend  to  business  at  all. 

"This  experience  taught  me  a  lesson,"  said  Mr.  Wool- 
worth.  "Up  till  then  I  thought  I  must  attend  to  everything 
myself.  But  now  I  indulged  in  the  luxury  of  a  bookkeeper 
and  I  also,  at  great  effort,  broke  myself  of  the  conceit  that  I 

417 


4i8  A  MAN  AMONG  MEN 

could  buy  goods,  display  goods,  run  stores  and  do  everything 
else  more  efficiently  than  any  man  associated  with  me.  That 
really  marked  the  beginning  of  my  success  and  enabled  me  to 
expand  in  a  large  way.  From  then  on  I  confined  my  attention 
to  important  matters,  to  looking  ahead,  thinking  up  new  plans, 
giving  instructions  to  other  people,  placing  responsibilities  on 
them,  and  contenting  myself  with  general  supervision  of  the 
conduct  of  the  business.  So  many  thousands  of  merchants 
never  get  over  the  conceit  that  they  must  do  everything  them- 
selves, with  the  result  that  they  struggle  along  in  one  little 
store, 

"A  business  is  like  a  snowball.  One  man  can  easily  push 
it  along  for  a  while,  but  the  snowball  becomes  so  large  if 
pushed  ahead  that  help  must  be  obtained  to  roll  it — and  if  you 
don't  keep  rolling  it,  it  will  soon  melt." 

Reaching   the   Consumer 

The  field  in  which  Mr.  Woolworth  operated  was  merchan- 
dising; it  is  pertinent  to  observe  to  what  extent  his  experience 
was  typical.  Let  us  examine  the  various  channels  of  distribu- 
tion by  means  of  which  commodities  are  transferred  from  pro- 
ducer to  consumer,  our  aim  being  to  note  the  present  tend- 
encies in  merchandising  with  respect  to  the  one-man  busi- 
ness.    (See  Figure  33.) 

The  usual  channel  of  distribution  is  designated  by  (i)  in 
the  diagram.  The  manufacturer  turns  over  his  products  to  a 
limited  number  of  selling  agencies,  who  in  turn  pass  them 
along  to  a  larger  number  of  jobbers,  who  dispose  of  the  mer- 
chandise in  turn  to  a  still  larger  number  of  retailers,  who  sup- 
ply the  ultimate  consumers. 

The  feature  here  is  the  growth  of  the  large-scale  depart- 
ment store.  The  old-fashioned  general  store  of  the  country 
crossroads  supplied  nearly  every  line  of  merchandise  which 
the  limited  wants  of  its  community  demanded.    The  increased 


TEAM-WORK 


419 


PRODUCERS  OF  MERCHANDISE 


Q)  (2) 


Chain 
Headquarters 


Q) 


@  ® 


Commission 
Merchanf 


Mail  Order 
House 


Chain's 

Retail 

Stores 


Manufacturer^ 
Branch 


Jobber 


Manufacturer's 
Advertising 


Retailer 


Manufacturer's 
Retail 
Stores 


CONSUMERS 


CHAIN  MAIL  USUAL         MANUFACT-    MANUFACT'R 

STORE  ORDER       CHANNELOF        URERS         DIRECT  TO 

SYSTEM  HOUSE      DISTRIBUTION     CHAINS         CONSUMER 

Figure  33.    The  Channels  of  Distribution 


420  A  MAN  AMONG  MEN 

demands  of  large  town  and  city  consumers  led  to  two  conse- 
quences: the  development  of  the  specialty  store,  retailers 
devoting  themselves  to  shoes,  hats,  silks,  books,  and  the  like; 
and  the  rise  into  prominence  of  the  department  store,  a  mam- 
moth institution  in  which  scores  of  specialty  stores  are  com- 
bined under  one  roof.  It  is  not  unusual  for  200,000  cus- 
tomers to  enter  one  of  these  stores  during  a  single  day,  nor 
for  its  purchases  of  a  particular  commodity  to  total  $100,000. 
Its  delivery  wagons  and  cars,  drawn  up  one  behind  the  other, 
would  surround  an  entire  city  square  and  its  employees  may 
exceed  6,000. 

The  relative  status  of  these  stores  is  shown  in  a  report  on 
the  volume  of  business  of  leading  stores  in  the  one  hundred 
largest  American  cities,  prepared  by  the  Curtis  Commercial 
Research  Division.  This  study  comprised  a  total  of  $943,- 
451,000  worth  of  merchandise,  which  was  found  distributed 
as  follows: 

100  largest  stores,  one   in  each  city  $260,740,000  or  28% 

100  second  largest  stores,     "      "       "  "  166,100,000    "  18% 

100  third            "         "  "      "  "  "  130,561,000    "  14% 

100  fourth         "         "  "      "  "  "  97,880,000    "  10% 

100  fifth             "        "  "      "  "  "  69,735,000    "  7% 

Other  large  stores  218,435,000    "  23% 

The  tendency  here  shown  is  equally  noticeable  in  the  other 
channels  of  distribution.  The  chain  stores  (No.  3  in  the 
foregoing  diagram)  represented  by  retail  corporations  such 
as  the  United  Cigar  Company,  the  F.  W.  Woolworth  Com- 
pany, and  the  Great  Atlantic  &  Pacific  Tea  Company;  and 
manufacturers'  chains  (No.  4)  represented  by  organizations 
such  as  the  W.  L,  Douglas  Shoe  Company,  the  Regal  Shoe 
Company,  and  the  Knox  Hat  Company  have  come  to  be  a 
prominent  factor  in  merchandising,  as  the  following  statistics 
gathered  in  1914  by  Printers'  Ink  will  demonstrate : 


TEAM-WORK 


421 


Number  of     Their  Number 

Field  Chains  of  Stores 

Groceries    500  8,000 

Tobacco    250  2,500 

News-stands 200  2,500 

5c  and  IOC 180  2,000 

Oil,   gasoline,  etc 5  2,000 

Drugs    200  1,400 

Restaurants    100  1,400 

Pianos  and  musical  instruments 125  1,000 

Sewing  machines   2  1,000 

Boots  and  shoes 50  700 

Automobile    accessories 50  650 

Clothing    50  600 

All  others  1,076  6,799 

Total 2,788  30,549 

While  space  does  not  permit  the  discussion  of  the  other 
channels  of  distribution  designated  on  the  foregoing  diagram, 
the  present  tendencies  in  merchandising  are  indicated  pretty- 
closely  in  this  tabulation  of  what  has  taken  place  during  eleven 
years  in  Greater  New  York's  retail  grocery  trade : 

1903  1914        Per  Cent  Increase 

All  stores  8,750  13,513  54 

Chain  stores  215  985  360 

Large-Scale  Production 

The  tendency  toward  centralization  of  ownership  and 
management  has  been  even  more  completely  developed  in 
production.  An  establishment  whose  annual  product  totals 
$1,000,000  or  over  certainly  has  gone  far  beyond  the  one- 
man  stage ;  according  to  the  returns  of  the  Thirteenth  Census 
the  number  of  such  establishments,  1,900  in  1904,  had  in- 
creased to  3,060  in  1909.  While  these  establishments  even 
in  the  latter  year  were  relatively  insignificant  in  number,  com- 
prising only  I.I  per  cent  of  the  whole,  their  product  in  1904 
represented  38  per  cent  of  the  total  product  manufactured  and 
in  1909  an  increase  to  43.8  per  cent. 


422 


A  MAN  AMONG  MEN 


At  the  time  the  matter  of  price  fixing  was  before  Congress 
in  September,  19 17,  it  was  learned  that  60  per  cent  of  the 
United  States  annual  production  of  40,000,000  tons  of  pig- 
iron  was  produced  by  twelve  companies;  that  72  per  cent  of 
the  43,000,000  tons  of  steel  ingots  produced  annually  were 
made  by  thirteen  companies,  although  200  companies  were 
operating  in  this  field ;  that  62  per  cent  of  the  steel  bars  were 
produced  by  eight  companies;  89  per  cent  of  the  shapes  by 
five  companies;  and  66  per  cent  of  the  plates  by  seven  com- 
panies. 


Advantages  of  the  Big  Business 

This  movement  toward  consolidation  is  similarly  to  be 
observed  bringing  about  great  changes  in  transportation,  pub- 
lishing, mining,  contracting,  real  estate,  and  banking.  In  fact, 
while  certain  lines  of  business  are  so  well  adapted  to  a  one- 
man  stage  that  they  may  be  expected  to  persist,  the  tendency 
in  general  is  toward  the  large-scale  enterprise. 

The  reason  for  this  general  tendency  is  clear.  The  large- 
scale  enterprise,  compared  point  by  point  with  the  small, 
possesses  distinct  advantages  with  respect  to  the  four  oper- 
ations of  business,  viz.,  production,  sales,  accounts,  and  finance. 
The  more  important  of  these  advantages  can  thus  be  sum- 
marized : 

1.  Strategic  Location  of  its  Units.  The  chain  store  has 
developed  this  advantage  to  a  high  degree  of  perfection;  but 
other  concerns  in  the  location  of  their  subsidiary  plants, 
branches,  offices,  or  agencies  can  also  place  them  strategically. 
This  permits  the  adjustment  of  each  unit  to  its  particular 
field  and  it  often  secures  a  saving  in  cross  freights. 

2.  Increased  Use  of  Machinery.  The  volume  of  oper- 
ations undertaken  by  the  large-scale  enterprise  is  so  large 
that  when  classified  certain  of  these  operations  will  be  reduced 
to  routine  and  hence  subject  to  machine  operation.     Sealing 


TEAM-WORK 


423 


and  stamping  machines,  automatic  gear  cutting  machines,  and 
automatic  box  filHng  devices  illustrate  very  nicely  this  advan- 
tage. 

3.  Utilization  of  By-Products.  The  stockyards,  when 
they  have  centralized  on  an  enormous  scale  the  slaughtering 
of  Hvestock,  are  able  to  develop  various  subsidiary  uses  for 
products  which  the  individual  butcher  could  only  waste.  The 
coke  industry,  the  salvage  carried  on  by  department  stores,  or, 
closely  akin,  the  stoppage  of  small  wastes  indicates  how  this 
advantage  can  be  utilized  in  practically  any  business. 

4.  Wider  Latitude  in  Choosing  the  Marketing  Plan.  The 
large-scale  enterprise  has  a  certain  freedom  of  choice,  com- 
monly denied  the  small  enterprise,  in  choosing  which  of  the 
various  channels  of  distribution  it  shall  employ.  Were 
national  advertising  decided  upon,  for  instance,  the  slogan  of 
"keeping  everlastingly  at  it  brings  success"  is  one  which  a 
large  enterprise  runs  less  risk  of  violating. 

5.  Regularization  of  Production  and  of  Prices.  The 
cycles  of  business,  which  have  been  described  in  a  preceding 
chapter,  can  be  studied  and  dealt  with  more  effectively,  as  a 
rule,  by  the  large-scale  enterprise.  Its  policy  thus  tends  to 
regularize  production  and  prices. 

6.  A  Superior  Management.  The  large-scale  enterprise 
usually  has  a  wide  variety  of  talent  in  its  management,  its 
research  staff  can  perfect  new  devices,  and  its  executives  are 
more  or  less  continuously  exchanging  ideas  and  comparative 
data.  Such  superior  management  purchases  more  effectively, 
supervises  credit  risks  more  accurately,  and  in  general  easily 
secures  for  its  company  the  various  other  advantages 
specified. 

The  Organization  Point  of  View 

While  no  enterprise  can  expect  to  utilize  all  these  advan- 
tages to   the    fullest,   the  possibility   of   deriving  substantial 


424 


A  MAN  AMONG  MEN 


profits  from  certain  of  them  accounts  in  the  main  for  the 
growth  of  large-scale  business.  The  general  tendency  toward 
business  establishments  of  large  size  was  greatly  accelerated 
by  war  demands.  Winning  the  war  meant  that  we  had  to  pool 
the  resources  of  the  entire  nation,  and  it  is  now  evident  that 
maintaining  a  post-war  supremacy  is  to  be  a  matter  of  eco- 
nomic centralization  on  a  scale  vaster  than  heretofore  at- 
tempted. 

The  man  who  surveys  conditions  with  a  view  to  discovering 
certain  principles  which  will  guide  him  toward  success  today 
and  throughout  the  stirring  period  into  which  business  is 
swinging,  must  think  of  his  own  part  in  terms  of  organi- 
zation. (See  Figure  34.)  Otherwise,  however  good  his 
intentions  and  strenuous  his  efforts,  as  an  individualist,  a 
man  who  thinks  only  of  self  when  affairs  of  moment  are  under 
way,  will  putter  and  "mess"  things  far  more  than  he  helps. 
Since  business  in  every  line  of  importance  has  passed,  never  to 
return,  the  one-man  stage,  this  is  necessarily  so;  and  he  who 
would  play  a  notable  part  hereafter  must  accept  fully  the  or- 
ganizer's point  of  view  and  work  with  other  men. 

The  Business  of  Being  an  Executive 

In  saying  the  manager  should  accept  the  organization  point 
of  view  and  work  with  other  men,  we  have  a  general  principle 
of  great  value.  Nevertheless  it  possibly  appears  indefinite  and 
hence,  in  order  to  be  more  fully  useful  ought  to  be  re-stated  in 
somewhat  different  terms.  What  does  it  really  mean?  how 
does  it  operate  in  practice?  Here  we  have  questions  for 
whose  full  answer  volumes  would  be  required,  but  whose  "high 
spots"  at  least  we  shall  venture  to  set  forth  in  summarized 
form  even  at  the  risk  of  over-simplification.  In  putting  into 
practical  operation  the  organization  point  of  view,  the  execu- 
tive, it  appears,  proceeds  according  to  the  summary  on  pages 
426  and  427. 


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426 


A  MAN  AMONG  MEN 


I.     Organizes 


What  He  Does 

1.  Locates  the  real  opportuni- 
ties for  profits 

2.  Surrounds      himself      with 

able  men 

3.  Assigns    each    man    a    job, 
with  authority  to  proceed 

4.  Affords  his  men  construc- 
tive direction 


JVhat  He  Does  Not  Do 

1.  Does  not  wander  ofif  on  un- 
productive side  lines 

2.  Is  not  always  trying  to  be 
it. 

3.  Avoids  confusion  over  what 
is  to  be  done  and  who  is  to 
do  it 

4.  Will  not  putter  over  details 
and  hold  things  up  through 
non-decision. 


11.     Plans 


What  He  Does 

1.  Exercises  foresight,  pro- 
vides in  advance  for  diffi- 
culties 

2.  Draws  up  careful  plans  of 
procedure 

3.  Does  every  day  some  real 
constructive  thinking 

4.  Pushes  his  work 


What  He  Does  Not  Do 

1.  Will  not  be  tripped  up  by 
"first  one  thing  and  then 
another" 

2.  Is  not  always  busy  settling 
things  just  as  they  come 

3.  Not  too  harassed  and  wor- 
ried to  concentrate 

4.  Does  not  let  the  work  push 
him 


III.     Supplies  Incentives 


What  He  Does 

1.  Appreciates  generously  the 
efforts  of  others 

2.  Develops    and    trains    men 
constantly 


3.  Keeps  faith  with  his  organ- 
ization 


4.  Makes  himself  regarded  as 
a  friend  and  co-worker 


What  He  Does  Not  Do 

1.  Does  not  push  self  into 
limelight  by  belittling  his 
co-workers 

2.  Is  not  always  threatening 
discharge  and  telling  of  the 
incompetence  of  subordi- 
nates 

3.  Careful  not  to  break  spirit 
of  men  by  arbitrarily  tak- 
ing things  out  of  their 
hands 

4.  Does  not  dwarf  and  antag- 
onize men 


TEAM-WORK  427 

IV.     Supervises 

What  He  Does  What  He  Does  Not  Do 

1.  Bases    his    judgment    upon  i.  Does  not  plunge  in  the  dark, 
vital  business  data  nor  tolerate  loose  methods 

2.  Uses  summaries  and  graphs  2.  Will     not     wade     through 
of  these  data  masses  of  detail  when  un- 
necessary 

3.  Knows  good  results  because  3.  Avoids  mere  rule-of-thumb 
he  judges  them  by  standards  in  judging  results 

4.  Has  close  grip  on  essentials  4.  Has  less  suspicions  because 
of  position  he  has  more  facts 

Results  Attained 

1.  Co-ordination,  speed  and  control 

2.  Superior  output  with  respect  to  quantity, 
quality,  and  unit  cost 

3.  The  maximum  utilization  of  opportunity 
and  of  men,  and  the  minimum  wastage 

Rules  of  the  Business  Game 

The  above  items,  while  they  do  not  express  by  any  means 
all  the  things  an  executive  does  and  does  not  do,  set  forth  with 
fair  adequacy  the  essentials  of  the  manager's  job. 

In  order  that  these  four  processes  of  organization,  plan- 
ning, the  supplying  of  incentives,  and  supervision,  may  func- 
tion properly,  however,  so  that  there  may  be  additional  security 
that  managers  and  men  do  not  work  at  cross  purposes,  there 
is  need  of  those  carefully  worked  out  rules  of  the  business 
game  which,  in  contrast  to  rule-of-thumb,  we  may  term 
scientific  management. 

The  story  of  the  very  early  steps  in  scientific  management 
as  worked  out  in  the  yards  of  the  Bethlehem  Steel  Company, 
where  from  400  to  600  shovelers  were  under  the  charge  of 
Frederick  W.  Taylor,  has  become  a  classic.  The  belief  cur- 
rent among  managers  at  the  time  was  that  to  shovel  materials 
a  man  must  simply  shovel,  and  this  these  men  were  doing — 
sixteen  tons  daily.    Taylor  believed  that  without  longer  hour? 


428  A  MAN  AMONG  MEN 

or  more  intense  effort  on  the  part  of  the  men,  output  could 
be  materially  increased ;  and  accordingly  he  put  into  operation 
his  now  well-known  four  principles  of  scientific  management. 

Principles  of  Scientific  Management 

1.  The  Development  of  a  Science  for  Each  Element  of  a 
Man's  Work,  Which  Replaces  the  Old  Rule-of -Thumb  Method. 
The  proper  size  of  shovel  as  the  result  of  a  considerable  num- 
ber of  experiments  was  found  to  be  that  which  held  twenty- 
one  pounds;  consequently  eight  or  ten  different  kinds  of 
shovels  were  provided,  each  designed  to  hold  twenty-one 
pounds,  the  larger  shovel  for  materials  of  light  weight  and 
the  smaller  for  the  heavy.  The  method  of  inserting  the  shovel 
into  the  material,  the  speed  at  which  the  shoveling  should  be 
done,  the  proportion  of  time  a  man  should  be  under  load  and 
at  rest,  were  among  the  other  elements  studied. 

2.  The  Scientific  Selection  of  Workmen^  Not  all  the 
laborers  were  found  properly  equipped  to  be  shovelers,  hence 
further  study  was  made  in  order  to  determine  the  type  best 
adapted  for  the  work  at  hand.  Those  not  meeting  the  require- 
ments were  transferred  elsewhere,  leaving  as  shovelers  in  the 
end  a  gang  of  laborers  who  were  picked  men. 

3.  The  Bringing  Together  of  the  Selected  Workmen  and 
the  Science.  The  men  were  trained  to  shovel  by  teachers 
provided  for  that  purpose,  and  as  a  further  incentive  a  bonus 
system  of  wages  was  introduced. 

4.  The  Almost  Equal  Division  of  Work  Between  the 
Management  and  the  Men.  Whereas  under  rule-of-thumb  a 
man  set  about  his  work  with  little  co-operation  from  the 
management,  under  the  plan  here  put  into  operation  an  office 
force  was  installed  which  olanned  the  work  at  least  a  day  in 
advance. 

The  result  of  this  elaborate  system — tool  room,  office,  tele- 
phones, additional  tools,  time-study  men,  clerks,  foremen,  and 


TEAM-WORK 


429 


labor  superintendent — was  that  output  increased  from  sixteen 
tons  to  fifty-nine,  wages  from  $1.15  to  $1,88,  and  ton  cost  to 
the  company,  all  expenses  included,  was  reduced  from  71/5 
cents  to  3  1/3  cents.  These  results  were  the  fruits  of 
standardization. 

Standardization  produces  a  rule  book  for  the  business 
game,  and  the  executive  ought  not  to  cease  until  systematic 
rules  are  in  force  throughout  the  entire  organization.  He  is 
interested  alike  in : 

Standards  for  the  factory. 
Quotas  for  the  sales  department. 

Standards    for  the   office   and   the   accounting  depart- 
ments. 
Budgets  for  the  financial  department. 

When  these  have  been  developed  and  put  into  operation, 
the  organization  will  run  smoothly  because  subject  to  rule. 

Charting  the  Manager's  Responsibilities 

While  a  discussion  of  these  various  standards  would  take 
us  too  far  afield,  we  are  nevertheless  concerned  that  the  man- 
ager guide  himself  correctly  through  these  rules  of  the  business 
game.  In  his  attempt  to  do  so  the  executive  will  seek  most  of 
all  to  know  clearly  what  he  is  responsible  for;  what  is  his 
job. 

"The  manager  should  be  a  hair-spring — not  a  main- 
spring," is  the  way  W.  A.  Field,  General  Superintendent  of 
the  South  Works,  Illinois  Steel  Company,  conceives  his  posi- 
tion. "He  should  not  have  to  drive  his  organization,  but 
merely  hold  it  back,  regulate  it,  keep  it  in  adjustment." 

"Doing  what  no  one  else  can  do,"  is  the  way  J.  B.  Ken- 
dall, head  of  a  real  estate  concern,  puts  it.  He  blocks  out  the 
big  plan,  finances  it,  and  then  turns  it  over  to  his  lieutenants 
to  be  realized. 


430  A  MAN  AMONG  MEN 

"My  job,"  says  J.  R.  Richardson,  General  Manager  of 
the  Hotpoint  Electric  Heating  Company,  "is  to  keep  the 
organization  steamed  up — and  to  hire  the  right  men,  which 
is  coming  to  be  more  and  more  important." 

Very  similar  is  the  conception  of  his  po^itiaR  held  by 
President  Patterson  of  the  National  Cash  Register  Company. 
Years  since,  an  executive  overworked  to  the  point  of  col- 
lapse, he  was  forced  to  give  up  active  duties  for  the  time  being 
and  sought  recuperation 'by  a  trip  to  Europe.  It  was  feared 
he  would  never  be  able  to  take  up  the  reins  of  manage- 
ment again.  While  on  this  trip,  however,  Mr.  Patterson 
in  pondering  over  his  difficulties,  hit  upon  a  simple  dia- 
gram which  he  believed  expressed  them  fully.  (See  Figure 
35a). 


Figure  35  (a)  and  (b).     The  Executive's  Position 

The  management  of  his  factory  had  proved  to  be  a  crushing 
burden  because  he  himself,  as  A  in  the  first  figure,  was  sup- 
porting the  rest  of  the  organization.  The  correct  position,  he 
decided,  could  be  secured  only  by  turning  the  pyramid  about, 
as  in  the  second  figure.  (See  Figure  35b.)  The  organiza- 
tion, because  of  his  wrong  location  with  reference  to  its 
other  members,  had  crushed  him.  President  Patterson  re- 
turned to  Dayton  conceiving  his  position  in  a  new  light,  and 
the  later  career  both  of  the  National  Cash  Register  Company 
and  himself  personally  confirms  in  a  most  convincing  way  the 
correctness  of  his  analysis. 


TEAM-WORK 


431 


PRODUCTION 

Check  weekly  oufput 
Find  cause  of  defective 

work. 
Conduct  experiments. 
Hold  foremen  to  promises. 
Determine  relative 

efficiencies. 


FINANCING 

Prepare  budgets. 
Watcti  department  ex- 
penditures. 
Guard  against  v\/astes. 
Supervise  credits. 
Confer  with  finance 
committee. 


SALES 
Help  set  quotas. 
Wat(jh  volume  of  sales 
Study  advertisins  results 
Look  Into  customers 

complaints. 
Seek  new/  products 

and  markets. 
Attend  sales  conferences 


MEN 

Show  appreciation 

and  personal  interest: 

Train  men  for  better  work 

Get  men  to  make 

suggestions. 

Make  deserved  promotions 

Watch  wage  scales. 

Be  at  committee 

meetings. 


ACCOUNTING 

Study  accounting  reports 
Make  results  known. 
Call  for  special  inves- 
tigations. 
Devise  new  checks. 
Seek  facts  constantly 


THE  PUBLIC 
Meet  newspaper  men. 
Issue  statements. 
Attend  public  functions 
Show  civic  interest. 
Cultivate  favorable 

public  opinion. 
Keep  business 

standards  hi3h. 


Figure  36.     "My  Duties"  Analyzed 


The  analysis  of  his  position  is  essential  if  the  executive  is  to  co-operate  effectively. 
The  outline  of  such  an  analysis  is  here  shown,  the  presidency  of  a  moderate-sized 
corporation  being  the  position   assumed. 


432  A"  MAN  AMONG  MEN 

Outlines  of  Specific  Duties 

These  general  conceptions  should  next  be  followed  by 
analyses  which  outline  the  duties  of  the  position  somewhat 
Specifically.  Figure  36  illustrates  an  analysis  such  as  the 
president  of  a  small  corporation  might  make,  although  with 
the  responsibilities  of  a  given  position  clearly  before  him  and 
his  pencil  in  hand,  an  executive  might  well  go  into  more  specific 
detail  than  is  here  indicated. 

Since  an  organization  comes  sooner  or  later  to  reflect  its 
manager,  this  charting  of  his  responsibilities  represents  an  es- 
sential element  in  team-work. 


Exercises 

Careful  Adjustment  of  Function 

As  a  business  expands  questions  regarding  differentiation 
of  function  and  distribution  of  responsibility  among  its  offi- 
cials are  bound  to  multiply.  The  problems  involved  here  have 
already  been  considered  in  part  in  the  chapter  on  the  Private  Secre- 
tary, but  they  present  themselves  now  in  much  more  complex  form. 
Here  it  is  not  a  matter  of  personal  relations  between  a  single  execu- 
tive and  one  or  two  immediate  subordinates.  It  concerns  the 
relations  among  many  officials  whose  work,  all  essential  and  in 
large  measure  independent,  interlaces  in  various  points.  It  is  most 
important  that  all  should  have  clearly  in  mind  where  one  man's 
duty  leaves  off  and  another's  begins.  Within  the  organization 
there  is  no  place  for  a  No  Man's  Land;  neither  can  there  be  over- 
lapping of  lines.  That  business  progresses  best  in  the  rapidly  shift- 
ing conditions  of  today  which  is  able  not  merely  to  mobilize  its  full 
power  of  men  and  resources,  but  is  both  able  and  ready  to  readjust 
its  "line-up"  from  time  to  time  on  the  basis  of  scientific  analysis. 

A  Test  of  Executive  Capacity 

The  readjustment  and  perfecting  of  the  business  "line-up"  can 
proceed  more  expeditiously  if  the  executive  capacity  of  the  men  in- 
volved receives  a  more  definite  appraisal.  For  this  purpose  the  fol- 
lowing test  has  been  devised.  In  making  the  appraisal,  after  each 
question  place  in  the  column  at  the  right  the  proper  letter  as  per  th9 
following  rating  scale: 


TEAM-WORK 


433 


A — My  methods  in  this  respect  are 

T) <(           <«  it            "  II  <l 

/-'      tC                          II  l(            H  {<  ti 

Y\          a                  t(  <<    <<  a  i< 


Excellent 
Good 
Fair 
Poor 


Question 


Organization 

1.  Have   I    located   the   real   opportunities   aflEorded   by    my   position?      (.Am   I    off 

on   side   lines,    looking    for   the    surface    errors    of    subordinates?) 

2.  In    turning    these    opportunities    into    realities    did    I    surround    myself    with 

able   men?      (Do    1    surround   myself    with    a    lot   of    "cheap"    second   raters, 
so   that   I    can    have   a   better   chance    to   be    the   whole    thing    myself?) 

3.  Has   each   of   these    men    his   job   and   the   authority   to   proceed?      (Does   con- 

fusion   exist,    with    repeated    calls    coming    in    for    instructions?) 

4.  Are   my   subordinates   securing    from   me   constructive   directions?     (Do   they 

find    me    a    putterer    over    details,    a    laggard    whose    non-decisions    holds 
them  up?) 

Planning 

S-     Are   difficulties   foreseen   and   their  effects  provided   for  in   advance?      (Does 
"First    one    thing    and    then    another"    continually    trip    me    up?) 

6.  When    new    projects    are    decided    upon,    do    I    draw    up    careful    outlines    of 

procedure?      (Am    I    busy    settling   things    piece    meal    as   they    come?) 

7.  Am    I    doing   every    day    some    real    constructive    thinking?      (Am    I    too   har- 

assed   and    worried    to    concentrate?) 

8.  Do   I    push    the    work?      (Does    the    work   push    me?) 

Incentives 

9.  Do   I   appreciate  generously  the   results  obtained  by   others?      (Do   I   belittle 

their  efforts  and  push  myself  into  the  limelight?) 

10.  Am  I  developing  and  training  men  constantly?  (Am  I  always  threatening 
discharge  and  telling  how  incompetent  my  co-workers  are  ? 

ti.  Can  I  keep  faith  with  my  organization,  permitting  each  man  his  due  free- 
dom and  reasonable  leeway  for  errors?  (Do  I  break  the  spirit  of  my 
men   by   arbitrarily    taking   things    out   of    their   hands?) 

12.  Am    I    regarded    as    a    friend    and    co-worker?       (Have    I    dwarfed    and    an- 

tagonized  men,   and   instead   of   being  a  dispenser   of   the   fair   deal — ^been 
a  dispenser  of   "bunk"  ?) 

Supervision 

13.  Is  my  judgment  based   upon   the   sound   data  which   vitallv  affects   my  busi- 

ness?     (Such  sound  data  lacking,   am  I   left  in   the  dark?) 

14.  Have    these    sound    data    been    properly    summarized    and    reduced    to    graphic 

form  for  my  use?      (Does  the  slow  wading  through  much  irrelevant  matter 
to   get   what    I    want    cause    me    more    bother    than    help?) 

15.  Do   I   recognize   excellent   results   when   such   are   produced?      (Am    I   a    rule- 

of-thumb    man    without    carefully    worked    out    standards?) 

16.  Have   I   a   close   grip   on   the   essentials   of   my   position?      (Am   I    more   filled 

with    suspicions    than    facts?) 


Rating 


Test  Chart  20.     Sixteen  Tests  of  Executive  Capacity 


m 


CHAPTER  XXV 

CO-OPERATION 

You  will  never  have  the  right  team-work  unless  each  man 
is  looking  after  all  of  his  own  job — and  all  the  others  know 
that  he  is. — John  N.  Willys,  President,  Willys-Overland 
Company. 

The  x'lacing  of  First  Things  First 

The  rules  of  the  business  game,  in  their  more  carefully 
wrought  out  state  represented  by  the  principles  of  scientific 
management,  require  the  addition  of  a  second  element  before 
the  organization  attains  its  desired  smoothness  of  operation. 
This  element  is  co-operation. 

It  is  true  that  in  this  wonderful  machine  age  the  emphasis 
within  large-scale  establishments  appears  to  be  placed  upon 
mechanical  elements.  As  a  rule  much  is  heard  of  high-speed 
steel,  multiple-spindle  drills,  automatic  lathes,  electric  resist- 
ance welding,  internal  transportation  systems,  plant  layouts, 
control  boards,  and  similar  items  which  comprise  the  me- 
chanics of  industry,  but  not  a  great  deal  is  said  concerning  the 
equally  important  but  more  elusive  elements  encountered  when 
men  in  their  efforts  are  bound  together.  Yet  it  is  significant 
to  note  that  when  a  really  big  executive  surveys  a  really  big 
task — as  did  Mr.  Stettinius  in  the  following  typical  instance — 
his  emphasis  is  somewhat  differently  placed. 

In  the  year  191 5,  the  firm  of  J.  P.  Morgan  and  Company 
was  appointed  commercial  agent  for  the  British  Government. 
Edward  R.  Stettinius  was  taken  from  his  position  as  presi- 
dent of  the  Diamond  Match  Company  and  appointed  the 
company's  representative.  The  Morgan  offices  were  overrun 
not  with  hundreds,  but  thousands  of  people  anxious  to  sell 

434 


CO-OPERATION  435 

all  kinds  of  commodities.  There  were  manufacturers,  both 
responsible  and  irresponsible,  of  clothing,  machinery,  hard- 
ware, chemicals,  surgical  instruments,  automobiles,  and  what 
not;  there  were  merchants,  commission  agents,  horse  dealers, 
inventors,  and  war  brokers  by  the  score.  Everything  was  for 
the  time  being  in  a  state  of  chaos. 

The  Best  Index  for  Efficiency 

"A  large  portion  of  the  stuff  the  British  wanted  here  dur- 
ing the  first  twelve  months  of  the  war,"  says  Mr.  Stettinius, 
"had  never  been  produced  in  the  United  States  before,  out- 
side of  our  own  arsenals,  except  to  a  very  limited  extent.  Our 
initial  problem  was  how  to  start  up  the  wholesale  manufacture 
of  munitions.  Existing  plants  were  totally  inadequate;  but 
how  and  where  should  we  begin  to  develop  others?  To  what 
extent  could  concerns  making  other  things  transform  their 
machinery  and  equipment  into  plants  for  the  output  of  muni- 
tions ?  Would  steel  plants  be  the  most  suitable,  or  automobile 
factories,  or  locomotive  works,  or  car  building  works— or 
what  ? 

*'We  were  embarking  on  an  uncharted  sea.  We  had  no 
compass  or  precedents  to  guide  us.  It  was  an  absolutely  new 
industrial  problem.  It  not  only  involved  many  milHons  of  dol- 
lars, but  possibly  the  lives  of  thousands  of  men ;  serious  mis- 
takes would  occasion  delays  and  dangers  of  far  more  moment 
than  the  heavy  money  loss.  Some  plan,  some  principle,  some 
policy,  had  to  be  adopted,  and  adopted  quickly. 

"After  careful  study,  we  decided  that  in  placing  war  con- 
tracts we  would  have  to  be  guided  less  by  the  nature  of  any 
concern's  products  than  by  the  character  of  the  men  at  its 
head.  We  figured  that  the  layout  of  any  plant,  the  design  of 
the  buildings  or  the  kind  of  machinery  in  it,  was  of  minor 
importance  to  the  degree  of  success  that  had  been  exhibited  in 
running  it.    In  other  words,  brick  and  mortar,  machines  and 


I 

436  A  MAN  AMONG  MEN 

tools,  were  not  what  we  went  by,  but  the  brain  that  adminis- 
tered these  things.  We  proceeded  on  the  theory,  which  we 
had  no  occasion  subsequently  to  abandon,  that  97/4  per  cent 
of  the  efficiency  of  the  plants  lies  in  the  men,  and  only  2^/2 
per  cent  in  the  bricks,  mortar,  and  machinery  that  make  up 
the  plant.  Given  the  right  stamp  of  men,  we  believed  they 
would  get  there." 

The   Organization's  First  Essential 

This  conclusion  reached  by  Mr.  Stettinius  was  not  merely 
a  happy  idea  which  worked  out  well  in  connection  with  war 
orders  but  a  fact  of  basic  importance  in  the  management  of  any 
enterprise.     The  organization's  chief  essential  is  men. 

"Men  make  an  organization,  not  machinery  or  plants," 
says  John  D,  Rockefeller.  "The  right  kind  of  business  men 
will  build  up  an  organization  capable  of  producing  a  large 
volume  of  a  good  product  at  a  low  price — the  three  things 
essential  to  success."  The  secret  of  the  Standard  Oil  Com- 
pany's tremendous  growth,  Mr.  Rockefeller  thus  explains: 
"We  gathered  together  around  one  table  the  ablest  brains  we 
could  find  in  the  country  and  we  hid  nothing  from  one  another. 
We  each  gave  the  business  our  undivided  attention  and 
loyalty." 

In  order  to  secure  the  effective  co-operation  mentioned  by 
Mr.  Rockefeller  the  work  of  the  company  as  a  whole  has  to  be 
subdivided,  ranked  in  relative  importance,  and  delegated  to 
the  various  employees.  In  so  doing  it  is  intended  not  to  sup- 
press or  lessen  but  to  utilize  more  fully  the  total  net  power  of 
each  individual.  The  careful  working  out  of  duties  and  re- 
sponsibilities, indeed,  keeps  one  workman  from  standing  in 
another's  way  or  enables  him  to  reinforce  another  in  need  of 
help;  in  either  case  the  effectiveness  of  the  whole  group  is 
increased. 

Although  an  effective  army  is  impossible  without  elaborate 


CO-OPERATION  437 

arrangement  and  discipline  the  results  nevertheless  depend 
in  large  measure  upon  the  feelings  and  attitudes  of  the  in- 
dividual men  toward  each  other. 

"The  most  important  waste  in  business  is  not  of  materials 
but  of  time,"  points  out  James  Logan  of  the  United  States 
Envelope  Company.  "Now  to  make  the  most  effective  reduc- 
tions in  the  wastage  of  time,  you  must  have  co-operation  from 
your  employees.  In  other  words,  the  knack  of  working  with 
men  is  vital." 

It  ain't  the  guns  nor  armament. 

Nor  funds  that  they  can  pay, 
But  the  close  co-operation  that 

Makes  them  win  the  day. 
It  ain't  the  individual  nor  the 

Army  as  a  whole, 
But   the   everlastin'   team-work 

Of  every  bloomin'  soul. 

Surety  of  Performance 

In  order  to  render  effective  in  a  business  organization  the 
team-work  specified  so  stirringly  by  Kipling,  what  qualities  are 
essential  to  the  degree  that  they  may  well  be  termed  the  co- 
operative virtues?  The  first  of  these  concerns  the  surety  of 
performance. 

The  charting  of  a  person's  responsibilities,  described  in 
the  preceding  chapter,  can  be  regarded  only  as  preliminary  to 
their  discharge.  In  fact,  the  charting  itself  simply  renders 
definite  in  the  minds  of  both  the  person  concerned  and  his 
co-workers  certain  expectations,  which,  like  expectations  in 
general,  are  of  little  value  unless  followed  by  actual  perform- 
ance.    Can  he  be  depended  upon  to  do  this? 

The  accomplishment  of  the  expected  task  doubtless  could 
be  rendered  more  certain  in  various  ways,  such  as  the  use  of 
written  messages,  through  preliminary  investigations,  con- 
stant follow-up,  searching  inspections,  and  severe  penalties, 
plus  numerous  legal  safeguards.     But  so  cumbersome  are  such 


438  A  MAN  AMONG  MEN 

methods  and  so  intense  the  desire  for  speed  and  ease  of  opera- 
tion that  in  most  cases  the  business  world  is  convinced  it  is 
security  purchased  at  an  excessive  price  and  a  more  efficient 
substitute  is  sought. 

What  the  Name  "G.  Washington"  Meant 

The  problem  faced  here  is  v^ell  illustrated  by  the  experience 
of  customs  officers  in  the  West  Indies  nearly  two  hundred 
years  ago,  who  had  to  inspect  barrels  of  flour  sent  down  from 
the  colony  of  Virginia.  As  barrel  after  barrel  was  rolled  from 
the  ships  into  the  warehouses  these  inspectors  laboriously  un- 
fastened the  casks  to  make  their  test.  It  was  discovered  after 
a  time,  however,  that  barrels  upon  which  appeared  the  name 
"G.  Washington"  invariably  contained  the  grade  of  flour 
specified,  so  with  much  relief  and  a  considerable  expedition  of 
business,  they  rolled  such  barrels  along  without  examination; 
the  name  sufficed. 

The  guarantee  which  proved  most  effective  in  this  in- 
spection of  flour,  viz.,  dependence  upon  the  individual,  the 
business  world  now  utilizes  constantly,  and  it  seems  that  the 
greater  the  need  for  speed  and  accuracy,  the  more  complete 
is  its  utilization.  Business  as  a  whole  is  done  on  the  basis 
of  five  per  cent  cash  and  ninety-five  per  cent  credit.  In  Wall 
Street  the  really  big  operations  are  almost  wholly  a  matter 
of  credit.  Syndicate  agreements  involving  at  times  many 
millions  are  put  through  with  no  other  formalities  or  safe- 
guards than  telephone  conversations  and  a  few  brief  notes  of 
confirmation  exchanged  among  the  participants.  On  the 
floor  of  the  stock  exchange  a  member  holds  up  certain  fingers, 
a  fellow  member  nods  his  head,  and  this  for  the  time  being 
is  considered  ample  to  bind  the  transaction  although  it  may 
have  involved  thousands  of  dollars  and  a  cancellation  of  its 
conditions  within  an  hour  or  two  possibly  would  have  proved 
decidedly  profitable  for  one  of  the  parties.    In  the  same  spirit. 


CO-OPERATIOM 


439 


telephone  orders  to  buy  or  sell  securities  are  considered  as  bind- 
ing as  a  formal  contract. 

The  interrelation  between  men  within  organizations  and 
between  organizations  links  their  responsibilities  and  fortunes 
so  inextricably  that  as  a  business  virtue  dependability  pos- 
sesses a  decided  asset  value.  Those  who  propose  to  deal  with 
a  man  necessarily  are  concerned  about  his  dependableness  and 
their  questions  which  always  more  or  less  conspiciously  come 
to  the  forefront  are :  Can  he  hold  himself  stable  against  selfish- 
ness, cupidity  and  greed,  and  make  good  on  his  word?  Has 
he  the  stamina  and  self-control  needed  to  satisfy  this  modem 
business  requirement,  best  stated  in  the  phrase  ages-old, — 
"Whatsoever  ye  would  that  men  should  do  to  you,  do  ye  even 
so  to  them?" 

He  who  can  by  his  business  conduct  answer  these  questions 
affirmatively  possesses  character,  the  premier  co-operative 
virtue. 

Winning  the  Good -Will  of  Others 

Character  will  gain  men's  confidence  but  not  necessarily 
their  affection  and  good-will.  Yet  the  smile  of  William  C. 
Durant,  judged  solely  by  its  earning  power  in  the  financier's 
career,  doubtless  would  deserve  a  capitalization  of  $50,000, 
and  the  winning  ways  of  Charles  M.  Schwab  have  certainly 
had  as  much  to  do  with  the  success  of  the  Bethlehem  Steel 
Corporation  as  four  or  five  extra  millions  of  capital,  or  a  hun- 
dred laborers.  Character,  in  fact,  needs  as  its  supplement 
amiability,  for  while  in  former  chapters  the  executive  has  been 
referred  to  as  at  his  desk,  the  analysis  of  his  responsibilities 
shows  that  he  must  also  be  a  man  among  men. 

While  there  is  no  royal  road  to  the  good-will  of  others 
unless  it  be  the  very  general  dictum  of  deserving  it,  certain 
qualities  do  appear  among  those  executives  whose  hold  upon 
their  employees  and  associates  is  both  affectionate  and  en- 


440  A  MAN  AMONG  MEN 

during.  Open-mindedness  is  one  of  these  qualities.  The 
closed  mind,  the  attitude  of  self-sufficiency  and  business  stag- 
nation, naturally  repels  forward-looking  men;  but  the  execu- 
tive whose  mind  is  always  open  for  advice  and  suggestions 
supplies  his  co-workers  with  that  vague  yet  subtle  incentive 
which  at  bottom  constitutes  for  them  self-realization,  but  which 
in  its  practical  outworking  leads  to  their  personal  interest  in 
the  business  and  cordial  feelings  toward  the  person  who  directs 
their  common  enterprise. 

Enabling  Men  to  Make  Good 

"Every  business  needs  to  develop  the  personality  of  its 
men,"  says  George  H.  Barbour,  president  of  the  Michigan 
Stone  Company,  "for  that  means  individualism,  oripnality, 
growth,  and  progress." 

In  its  practical  aspects,  the  view  so  well  stated  here  by  Mr, 
Barbour  involves  only  very  simple  methods,  though  to  a 
narrow-minded  man  they  might  seem  most  difficult.  There 
needs  to  be  first  of  all  hearty,  constant  change  of  ideas,  a  pool- 
ing of  intelligence  and  experiences. 

"Once  a  week,  every  Saturday,"  says  the  captain  of  in- 
dustry whose  organization  at  South  Bethlehem  is  justly  famed 
for  its  esprit  de  corps,  "I  have  the  heads  of  the  various  de- 
partments, upward  of  forty,  take  luncheon  with  me.  Not 
a  word  of  business  is  permitted  during  the  meal;  but  after 
everything  is  cleared  away  we  discuss  matters  in  hand  and  ex- 
change opinions.  Every  one  of  the  gentlemen  present  is  at 
liberty  to  advise,  to  suggest,  and  to  air  his  ideas.  The  value 
of  these  meetings  is  very  great.  On  Monday  the  gentlemen 
who  have  lunched  with  me  call  their  head  men  together  and 
have  similar  meetings." 

The  man  who  wrote  those  words,  Charles  M.  Schwab,  is 
the  man  who  was  selected  finally  to  put  through  Uncle  Sam's 
tremendous  ship-building  program,  after  a  number  of  smaller 


CO-OPERATION 


441 


men  successively  had  proved  unequal  to  it.  One  of  the  duties 
of  every  executive  thus  is  to  take  his  part  as  a  useful  member 
of  the  "parliament"  in  which  he  sits,  not  to  be  merely  a  lay- 
figure  and  not  to  make  himself  a  nuisance  by  over-aggressive- 
ness. 

The  view  that  employees  are  assets,  as  a  matter  of  sound 
business  policy  deserving  the  attention  which  any  asset  of 
similar  value  should  receive,  will  eventually  lead  managers 
to  regard  themselves  very  properly  as  teachers.  The  em- 
ployees who  intrust  themselves  to  a  firm,  who  turn  over  cheer- 
fully to  its  keeping  their  time,  efforts,  business  reputation, 
and  possibilities  for  future  growth,  can  be  trained  and  en- 
couraged in  every  feasible  way  to  "make  good"  only  if  this 
firm  meets  the  moral  responsibility  it  has  incurred  and  meas- 
ures up  to  its  full  opportunity  as  a  going  concern. 

Tact,  a  Quality  Which  Makes  for  Effectiveness 

This  willingness  to  look  at  things  from  the  other's  view- 
point constitutes  the  essence  of  tact,  another  of  the  qualities 
which  make  for  effectiveness.  The  tactless  man  rasps  our 
temper  by  his  blundering  and  inconsiderate  ways  of  dealing, 
arouses  our  opposition  and  in  the  end  wastes  much  of  his  sur- 
plus energy  in  beating  against  the  walls  which  offended  persons 
have  raised  against  him.  The  methods  of  diplomacy  are  not 
such  as  these.  The  tactful  man,  in  other  words  the  business 
diplomat,  remembers  a  lady^s  birthday  but  forgets  Tierage; 
serves  as  a  mirror  in  which  his  co-workers  can,  occasionally 
at  least,  catch  glimpses  of  their  best  selves;  and  melts  away 
opposition  by  his  humor  and  good  nature. 

Unfortunately,  owing  to  a  confusion  regarding  their  true 
nature,  that  which  passes  for  tact  often  represents  deceit  un- 
adulterated and  that  which  is  called  diplomacy  is  often  merely 
lying  refined  a  bit.  In  reality  such  slyness  and  trickery  are 
base  counterfeits,  coined  by  those  anxious  to  secure  the  re- 


442 


A  MAN  AMONG  MEN 


wards  of  tact  and  diplomacy  without  cultivating  the  open- 
mindedness,  the  ready  sympathy  and  consideration  for  others 
upon  which  these  two  qualities  are  in  fact  based.  Needless 
to  say,  co-operation  represents  a  give-and-take  in  which  coun- 
terfeit coins  do  not  ring  true. 

It  is  in  part  due  to  the  exploitation  at  the  hands  of  "up- 
lifters,"  propagandists,  and  small  politicians  of  these  co-oper- 
ative virtues  that  business  men,  accustomed  to  think  in  matter- 
of-fact  terms  and  to  express  their  sympathies  not  in  empty 
phrases  but  in  tangible  ways,  are  usually  reticent  to  express  the 
very  great  consideration  which  they  as  a  class  feel  toward 
their  fellows.  Although  their  exteriors  present  a  somewhat 
harsh  appearance — which  in  certain  notable  cases  most  accu- 
rately indicates  the  much  shrivelled  soul  underneath — the  really 
big  executives  as  a  rule  do  possess  the  human  touch,  with 
sentiments  of  kindlinesj^.  ready  sympathy,  and  brotherly  love. 

Signs  Which  Indicate  Co-Operation 

The  co-operative  qualities  which  we  have  been  considering 
are  inner  virtues,  imbedded  deep  in  the  personality.  How  is 
their  presence  detected  by  co-workers  and  credit  given  for 
their  possession?  By  external  signs.  These  indicate  a  per- 
son's record  as  co-operator,  and  his  present  associates  and 
proposed  associates  read  most  of  them  in  a  matter-of-fact 
way. 

The  question  is  often  raised,  Do  clothes  make  the  man? 
No;  but  they  constitute  one  of  these  external  signs.  "A 
man's  clothes  go  a  long  way  to  help  the  people  he  meets 
classify  him,"  the  well-known  executive,  A.  H.  Revell,  very 
correctly  observes.  "This  classification  may  be  unconscious. 
At  first  glance  you  may  not  figure  out  that  because  a  man 
wears  a  black  frock  coat,  straw  hat  and  a  checkered  shirt,  he 
does  not  know  his  business,  but  the  chances  are  he  has  not 
learned  to  adjust  himself  to  his  environment.     And  a  man 


CO-OPERATION  443 

who  can  not  adjust  himself  is  seldom  a  good  business  man. 

"A  man  who  enters  the  office  with  a  sack  coat,  a  silk  hat 
on  his  head  and  a  cigar  in  his  mouth,  is  not  a  normal  man. 
He  hasn't  observed  the  fundamentals  of  dress;  the  chances 
are  that  he  has  not  associated  with  men  who  have.  A  man 
is  known  by  the  company  he  keeps,  and  his  clothes  reflect 
the  tastes  of  his  friends.  And  a  man  who  has  not  associated 
in  business  with  men  of  the  caliber  of  the  man  to  whom  he 
is  offering  a  proposition  cannot  be  assumed  to  be  able  to  place 
himself  in  the  owner's  position  and  see  the  situation  from  his 
viewpoint. 

"A  business  man  is  inclined  to  listen  to  someone  who 
appears  to  be  prosperous.  It  gives  him  confidence  in  his 
abilities.  But  prosperity  is  more  often  shown  in  neatness 
than  in  style.  A  big  diamond  in  a  soiled  shirt  doesn't  always 
prove  that  it  is  an  appreciation  of  the  esthetic  that  makes  a 
man  forgetful  of  the  dandruff  on  his  coat  or  the  mud  on  his 
shoes. 

"When  one  man  out  of  ten  estimates  a  man's  character 
by  his  clothes,  it  is  just  as  well  to  put  up  a  good  appearance. 
Appearances  are  deceitful,  but  the  man  who  makes  them 
count  for  him  instead  of  against  him  is  the  man  who  can  show 
the  bright  side  of  a  business  proposition." 

These  observations  made  by  Mr.  Revell  are  filled  with 
sound  sense. 

Suitable  clothes,  a  well-groomed  appearance,  ease  in  con- 
versation and  in  correspondence,  the  ability  to  preside  with 
dignity  over  conferences  or  pu!)lic  meetin^^s,  and  the  posses- 
sion of  good  manners  are,  it  is  true,  merely  externals,  yet 
these  things  are  not  arbitrary  rec|uirements_  fashioned  to  cramp 
the  freedom  of  dealing  man  with  man  but  have  developed  into 
a  social  code  because  they  do  facilitate  co-operation.  The 
man  who  conforms  to  them  works  among  other  men  with  less 
friction. 


444 


A  MAN  AMONG  MEN 


The  Iron  Grip  Surrendered? 

It  is  not  easy  in  these  days  when  business  has  so  completely 
passed  the  one-man  stage  to  over-emphasize  the  importance  of 
co-operation.  Its  value  steadily  rises.  In  the  small  business 
the  proprietor  is  always  face  to  face  with  his  helpers;  in  the 
large-scale  establishment  the  chief  owner  and  officials,  so  far 
removed  from  the  rank  and  file  that  the  old-time  personal 
touch  is  lost,  are  called  upon  to  reinstate  this  old-time  personal 
touch  by  the  utilization  of  methods  not  dreamed  of  in  the  man- 
agement of  yesterday.  With  these  improved  methods  all  the 
executives  of  the  large  organizations,  from  the  chairman  of 
the  board  of  directors  down,  can  stress  the  personal  element 
and  proceed  to  humanize  the  business.  Activity,  versatility,  per- 
sonality will  be  made  to  flourish,  in  many  respects,  even  more 
vigorously  than  in  the  small  business  because  it  has  larger 
human  resources  to  draw  upon  and  more  varied  opportunities 
to  present.     Co-operation  in  such  cases  becomes  very  real. 

Is  this  to  mean  a  lack  of  discipline,  a  sort  of  Bolshevistic 
ideal  at  work  in  American  business  ?  The  men  who  forge 
ahead  possess  almost  without  exception  a  certain  persistent 
driving  force.  They  are  the  sort  who  know  what  they  want 
and  push  toward  it  until  results  are  attained.  In  consequence, 
for  the  sake  of  a  very  fine  but  theoretical  co-operation,  shall 
the  executive  never  oppose  but,  reducing  himself  to  a  tactful 
nonentity,  surrender  to  the  whim  of  subordinates  his  iron 
grip  ?    It  were  co-oneralinr  '^p'rurt^t^  at  unreasonable  price. 

The  executive  is  an  executive  only  because  organization 
and  order  follow  in  his  wake,  and  organization  and  order  are 
necessary  if  effective  results  are  to  accrue.  It  is  a  matter  of 
expediency  for  all  concerned.  Under  the  stress  of  competition 
subordinates  prating  over-much  of  their  "rights"  and  demand- 
ing soft,  easy  conditions,  at  the  end  of  the  month  would  find 
their  do-as-you-please  attitude  producing  no  pay  checks.  This 
fact  is  more  generally   recognized  than   one   might  at   first 


CO-OPERATION  445 

suppose  and  the  experiences  of  the  Great  War  have  trained  a 
breed  of  men  who  will  recognize  it  still  more. 

The  Enterprise  Greater  Than  Self 

At  the  most  critical  day  of  the  great  German  drive  of 
March,  1918,  the  Germans  had  made  a  hole  between  the 
English  and  French  armies  and  were  pouring  through  the 
gap.  If  they  were  not  stopped  it  meant  the  out-flanking  of 
the  entire  front  and  the  risk  of  capture  of  thousands  of  men. 
But  the  emergency  found  a  true  executive  on  the  spot,  Gen- 
eral Carey,  a  British  officer  who  had  already  distinguished 
himself  in  the  war.  He  promptly  overstepped  the  regulations 
of  war.  He  collected,  wherever  he  could  find  them,  soldiers 
and  civilians,  engineers  and  ditch  diggers,  men  from  the 
headquarters  staff,  and  cooks,  got  them  into  line,  gave  them 
guns  and  told  them  to  stop  the  enemy.  Carey's  extemporized 
army  held  up  the  German  advance  for  two  days.  It  was 
impossible,  of  course,  but  they  did  it !  When  they  got  through 
Carey  received  an  official  reprimand  for  taking  non-com- 
batants into  the  fight  and  the  private,  hearty  thanks  of  the 
government  and  of  civilization. 

The  men  who  rallied  at  Carev's  command  and  fought  very 
nearly  to  the  death  realized  that  a  big  enterprise  was  under 
way  and  that  each  had  his  essential  part  to  perform.  In  the 
same  spirit  one  accounts  for  the  devotion  of  that  spirited 
band  which  rallied  round  Pizarro  in  Peru,  Cortez  in  Mexico, 
and  Washington  at  Valley  Forge,  or  of  those  industrial  loyal- 
ists who  remained  true  to  Marshall  Field  at  Chicago,  Carnegie 
at  Homestead,  and  Schwab  at  Bethlehem?  Strenuous  effort 
is  entirelv  compatible  with  intense  lovaltv.  provided  the  fruits 
of  co-operative  effort  are  shared  fairly.  When  each  associate 
recognizes  that  his  effort  combined  with  that  of  many  others 
secures  more  for  himself  than  were  it  exerted  individually,  all 
become  enthusiastic  co-workers  in  the  common  enterprise.   The 


446  A  MAN  AMONG  MEN 

executive  himself,  in  fact,  constitutes  only  one  associate  in  the 
enterprise  to  which  he  seeks  the  allegiance  of  others. 

The  solution  of  the  problem  involved  in  effective  co-opera- 
tion thus  is  simple  in  its  statement  but  far-reaching  in  its  con- 
sequences :  In  order  to  co-operate  without  at  the  same  time 
surrendering  his  authority  the  executive  need  only  identify 
himself  with  some  enterprise,  larger  than  self  and  masterful 
in  its  appeal,  to  which  he  surrenders  his  soul  as  it  stirs  his  am- 
bitions to  the  depths. 


Exercises 
Playing  the  Game 

The  throwing  of  one's  whole  energies  into  an  enterprise  greater 
than  self  is  often  termed  by  business  men  "playing  the  game."  Need- 
less to  say,  such  playing  of  the  game  stands  in  high  favor  among 
really  big  executives. 

Walter  Cottingham,  of  the  Sherwin-Williams  Paint  Company, 
says:  "How  shall  an  executive  tap  the  spring  of  inspiration  buried 
within  him  by  which  he  may  enthuse  himself  and  infect  others?  Let 
me  emphasize  that  never,  so  long  as  he  is  working  for  the  love  of  gain 
alone,  will  he  find  the  spring.  Such  an  aim  will  not  bring  the  high- 
est success — even  in  money.  He  must  play  the  game  for  the  sake 
of  the  game — there  must  be  the  desire  and  joy  of  doing  these  things, 
the  spirit  and  willingness  to  put  in  his  utmost  strength  because  he 
enjoys  his  work — because  he  wants  to  make  a  success  of  it — because 
he  wants  to  be  a  prize  winner  in  the  world's  great  race  for  achieve- 
ment." 

The  same  matter  is  emphasized  by  George  W.  Perkins,  who  de- 
clares: "The  most  important  thing  of  all  is  to  look  upon  your 
work  as  play  and  throw  yourself  into  your  work  with  the  same 
zest  and  relish  and  determination  to  excel  as  when  you  play 
baseball  or  checkers  or  football.  By  adopting  this  mental  attitude 
towards  your  work  you  can  accomplish  more  and  find  greater  pleasure 
and  satisfaction  in  the  doing  of  it." 

How  Do  You  Grade? 

In  this  playing  of  the  business  game,  are  you  or  are  you  not  a  good 
co-operator?  This  is  a  question  upon  which  we  ought  to  have  def- 
inite information,  yet  regarding  which  definite  knowledge  is  hard  to 


CO-OPERATION 


447 


obtain.  Test  Chart  21  has  been  devised  for  purposes  of  a  self-grading 
test.  Credit  yourself  in  the  column  at  the  right,  ten  points,  five  points, 
two  points,  or  whatever  other  number  your  qualifications  merit  in  each 
particular  case  when  measured  by  the  requirements  of  standard 
practice. 

What  is  your  final  grade? 

Which  credits  are  satisfactory?  which  unsatisfactory? 

What  definite  means  are  you  going  to  employ  for  raising  these 
low  credits? 


Questions 


1.  Am  I  convinced  that  co-operation  can  aid  me? 

2.  Have  I  a  clear  idea  of  my  own  responsibilities  ? 

3.  Can  I  be  depended  on  to  carry  out  the  business 

day's  numerous  minor  agreements  even  at  the 
cost  of  some  inconvenience? 

4.  Am  I  keeping  my  record  clear? 

5.  Is  my  manner  pleasing  and  do  I  present  a  well- 

groomed  appearance? 

6.  Am  I  open  minded,  approachable,  a  good  listener  ? 

7.  Can  I  work  well  with  subordinates  with  whom  I 

have  had  difficulties? 

8.  Can  I  support  actively  policies  decided  upon  but 

of  which  I  have  disapproved? 

9.  Am  I  interested  in  other  people  for  themselves, 

not  merely  as  possible  "customers"  for  myself  ? 
10.  Can  I  forego  immediate  personal  advantage  for 
the  sake  of  the  enterprise  as  a  whole? 


Total  Credits 


Credits 


Test  Chart  21.     Points  of  Co-operation 


CHAPTER  XXVI 

THE  NEW  IDEALS  OF  BUSINESS 

The  business  man  has  created  a  new  nobility  for  the  com- 
mon welfare. — R.  Goodwyn  Rhett,  President  United  States 
Chamber  of  Commerce. 

Thinking  in  Broader  Terms 

The  co-operative  virtues  have  grown  in  importance  as  busi- 
ness has  passed  from  the  one-man  stage  into  that  of  large- 
scale  production.  Their  scope,  however,  must  needs  have  been 
widely  extended  in  view  of  the  breakdown  under  stress  of  the 
Great  War  of  our  local  self-sufficiency  and  national  isolation. 
The  trend  of  the  times  and  the  terrific  revelations  of  the  war 
have  shown  that  no  man  lives  to  himself  alone,  and  that  society 
as  a  whole  has  a  claim  for  service  on  each  individual.  This 
claim  exists  in  peace  as  well  as  in  war.  It  has  always  been 
recognized  by  a  few,  but  of  late  years  has  come  to  be  more  gen- 
erally accepted,  and  now  is  fast  becoming  the  rule  of  action 
for  all  business  and  professional  men.  The  men  who  are  com- 
ing to  the  front  today  are  the  men  who  put  their  duties  as 
citizens,  as  patriots,  above  their  personal  business  interests. 

They  think  in  broader  terms.  They  are  able  to  visualize 
men  unseen,  that  great  group  termed  consumers  and  that  vaster 
and  vaguer  group  termed  the  public.  This  is  a  new  factor  in 
the  business  of  the  future,  and  the  far-reaching  social  develop- 
ment which  it  indicates,  the  dignity  and  exaltation  of  the  func- 
tion of  business,  can  scarcely  be  magnified. 

"Business  Is  Business" 

In  order  to  appreciate  the  progress  the  newer  ideals  of  busi- 
ness already  have  attained,  it  is  worth  while  as  a  contrast 

448 


THE  NEW  IDEALS  OF  BUSINESS 


449 


to  examine  the  old  theories  of  business  and  ascertain  how 
they  worked  out  in  practice.  It  is  to  be  borne  in  mind 
that  in  former  times  anything  attempted  that  was  hard, 
mean,  crooked  or  dishonorable  was  supposed  to  be  justified 
by  saying,  seriously,  as  if  it  meant  something,  "Business  is 
business." 

In  the  preceding  pages  certain  admirable  business  qual- 
ities possessed  by  John  D.  Rockefeller  have  been  frequently 
cited,  for  the  reason  that  his  careful  scrutiny  of  detail,  his 
sound  judgment  and  unusual  executive  ability  to  organize  and 
plan  on  a  magnificent  scale,  well  merit  the  study  of  men  who 
would  seek  advancement.  With  all  these  admirable  endow- 
ments, how  account  for  the  peculiar  opprobrium  that  attaches 
to  his  name?  To  explain  this  we  must  examine  certain  in- 
cidents of  his  career. 

It  had  scarcely  been  decided  in  the  sixties  that  Cleveland 
was  to  become  the  great  oil  refining  center,  when  young  Rocke- 
feller, then  twenty-three  years  old,  quitted  his  produce  com- 
mission house  to  go  into  the  petroleum  business.  He  was  of 
the  early-and-late  sort,  who  saw  everything,  forgot  nothing, 
and  never  talked.  The  twenty-five  rivals  already  on  the 
ground  at  Cleveland,  according  to  his  theory,  were  merely 
inconveniences  to  be  put  out  of  the  way  once  and  forever, 
and  his  brooding  strategy  after  a  time  evolved  a  master 
weapon,  namely,  secret  rebates  from  the  railroads. 

His  company,  the  South  Improvement  Company,  soon 
had  the  roads  serving  the  oil  region  bound  by  secret  contract, 
says  Miss  Tarbell  in  her  History  of  the  Standard  Oil  Company, 
to  these  provisions: 

"The  open  rate  on  crude  to  New  York  was  put  at  $2.56. 
On  this  price  the  South  Improvement  Company  was  allowed 
a  rebate  of  $1.06  for  its  shipments;  but  it  not  only  got  this 
rebate,  it  was  given  in  cash  a  like  amount  on  each  barrel  of 
crude  shipped  by  parties  outside  the  combination. 


450 


A  MAN  AMONG  MEN 


"The  open  rate  from  Cleveland  to  New  York  was  two  dol- 
lars, and  fifty  cents  of  this  was  turned  over  to  the  South  Im- 
provement Company,  which  at  the  same  time  received  a  rebate 
enabling  it  to  ship  for  $1.50.  Again,  an  independent  refiner  in 
Cleveland  paid  eighty  cents  a  barrel  for  the  shipping  of  his 
crude  from  the  Oil  Region  to  his  works,  and  the  railroad 
sent  forty  cents  of  this  money  to  the  South  Improvement 
Company. 

"An  interesting  provision  in  the  contract  was  that  full 
way  bills  of  all  petroleum  shipped  over  the  roads  should 
each  day  be  sent  to  the  South  Improvement  Company. 
This,  of  course,  gave  them  knowledge  of  just  who  was  doing 
business  outside  of  their  company — of  how  much  business 
he  was  doing  and  with  whom  he  was  doing  it.  Not  only 
were  they  to  have  full  knowledge  of  the  business  of  all 
shippers — they  were  to  have  access  to  all  books  of  the  rail- 
roads." 

Beaten  year  by  year  by  such  tactics  as  these,  the  inde- 
pendent refiners  by  1884  came  to  look  upon  John  D.  Rocke- 
feller with  superstitious  awe,  as  a  dread  power  always  ready  to 
spring,  cruel,  fighting  in  the  dark,  and  possessed  of  diabolic 
cleverness.  To  them  he  was  a  man  of  mystery  who  carried 
concealed  weapons.  Was  it  strange  then  that  Mr.  Rockefeller 
"persuaded"  his  competitors  to  sell  him  their  properties  at 
his  prices?  "I  have  ways  of  making  money,"  he  pointed  out 
to  one  of  them,  Mr.  Hewitt,  "that  you  know  nothing  of." 

The  "PubUc  be  Damned"  Policy 

Here  we  have  selfishness  carried  almost  to  the  point  of 
insult.  While  it  is  true  that  Mr.  Rockefeller  as  a  business 
man  possessed  the  highly  admirable  qualities  which  have  been 
cited,  his  greed  combined  with  unscrupulous  methods  of  the 
kind  just  described  caused  these  admirable  qualities  to  be  as 
a  rule  ignored  and  rendered  him  perhaps  the  most  widely  dis- 


THE  NEW  IDEALS  OF  BUSINESS 


451 


trusted  of  all  American  leaders  of  industry.  Yet  the  methods 
which  Mr.  Rockefeller  employed  for  attaining  his  end  have 
characterized  other  builders  of  American  enterprise. 

"Law!"  once  roared  Commodore  Vanderbilt,  "what  do  I 
care  about  the  law?  Hain't  I  got  the  power?"  Upon  an- 
other occasion,  observing  that  a  Central  director  had  not 
voted  for  certain  propositions  then  under  consideration,  he 
asked  the  reason  why.  "Don't  you  know,  Commodore,"  his 
friend  replied,  "that  each  and  every  one  of  those  transactions 
is  absolutely  forbidden  by  the  statutes  of  the  State  of  New 
York?" 

"My  God!  John,"  said  Vanderbilt,  "you  don't  suppose 
you  can  run  a  railroad  in  accordance  with  the  statutes  of  the 
State  of  New  York,  do  you?" 

Jay  Gould's  railroad  operations  embraced  every  phase  of 
kite  flying,  watering,  stock  jobbing,  bankruptcy  of  companies 
and  assessment  of  stockholders.  Since  wrecking  a  property, 
as  he  planned  it,  proved  quite  as  profitable  as  building  it  into 
a  dividend  payer,  he  acted  consistently  upon  the  conviction 
that  "all  is  permitted"  which  can  be  successfully  accom- 
plished. 

Edward  H.  Harriman  in  pursuit  of  railroad  dictatorship 
was  a  tyrant,  harsh  and  overbearing,  terrible  in  his  crushing 
directness  and  absolutely  without  tact.  The  financier  who  was 
perhaps  Mr.  Harriman's  closest  associate  once  exclaimed,  when 
his  partner  suggested  that  some  friend  of  Mr.  Harriman's 
ought  to  speak  to  him  frankly  on  the  unwisdom  of  his  lack  of 
tact :  "Friend !  I  don't  believe  that  Harriman  has  a  friend  in 
the  world!" 

The  Public  Revolt  Against  Misused  Power 

Yet,  some  years  ago  when  accounts  of  their  enterprises 
occupied  places  of  prominence  in  newspapers  and  magazines, 
these  four  men  were  regarded  as  highly  successful  captains 


452  A  MAN  AMONG  MEN 

of  industry  and  their  careers  even  to  the  narrow  spirit  in 
which  they  achieved  were  considered  worthy  models.  In 
fact,  there  seems  abundant  reason  to  beheve  that  the  typical 
captain  of  industry  a  generation  since  was  actuated  only  by 
a  philosophy  of  getting;  his  supreme  concern  being  revealed 
in  this  test  of  any  proposal,  "Does  it  yield  me  what  I  seek?" 
Ruthless  power  for  the  sake  of  pecuniary  return  was  their 
ruling  motive  because  the  reins  of  power  always  tingle  in  the 
hands  of  a  strong  man  and  the  one  sure  evidence  of  achieve- 
ment then  lay  in  material  possessions. 

Wealth  did  flow  in  upon  these  men.  But  the  conviction 
gradually  became  current  in  the  business  community  that  this 
gain  on  the  part  of  the  captains  of  industry  was  due  to  the 
disturbance  they  created  rather  than  to  their  productive  effort. 
The  real  social  advantage  that  resulted  from  much  of  their 
organizing  ability  was  obscured  by  the  grasping  avarice,  the 
foul  play  in  competition,  the  contempt  for  moral  and  legal 
obligations,  and  the  utter  absence  of  any  social  conscience, 
shown  in  their  business  relations.  These  men  who  for  ma- 
terial gain  sacrificed  conscience  and  honor  and  trampled  on  all 
social  right,  after  a  time  irritated  the  public  into  a  condition  of 
enmity  hard  to  overcome. 

In  its  practical  application  this  public  indignation  has 
been  responsible  for  a  wide  variety  of  repressive  and  regula- 
tive measures — for  public  distrust,  "soap  box"  and  Chau- 
tauqua agitators,  "muckrakers,"  investigating  commissions, 
public  utility  and  railroad  commissions,  anti-trust  legislation, 
income  and  inheritance  taxes,  and  the  increased  demand  for 
government  ownership  and  operation.  The  net  result  of  such 
measures  is  to  make  customary — and  frequently  legal  as  well 
— a  stricter  and  more  specific  code  of  rules  for  the  business 
game.  The  controller  of  an  enterprise  is  under  scrutiny  that 
he  compete,  and  fairly  too;  and  the  umpire  is  increasingly 
watchful  and  jealous  of  his  power. 


THE  NEW  IDEALS  OF  BUSINESS 


453 


The  "Public  be  Served"  Policy 

There  are  those  who  regret  the  good  old  days;  who  con- 
sider the  brutal  and  remorseless  competition,  the  disregard 
of  law  and  fair  play,  the  selfish  scramble  for  money  and 
power,  as  in  themselves  something  admirable  and  resulting 
in  the  survival  of  the  fittest.  Such  as  these  see  in  fair  play, 
submission  to  law,  and  consideration  for  employees  and  the 
rights  of  the  public,  only  weakness  and  degeneration.  They 
say  that  business  is  in  danger  of  becoming  a  parlor  game, 
with  men  in  their  most  fierce  competition  restricted  to  bon 
mots  and  banquets.  Is  there  any  truth  in  this  theory?  It 
is  true  that  rough-and-tumble  individualism  is  gone  never 
to  return;  yet  after  all  the  game,  although  changed,  re- 
quires not  less  but  a  different  kind  of  skill.  The  old  system 
emphasized  the  strenuous  competition,  the  production  of 
material  goods  in  vast  amount,  the  heaping  up  of  mighty 
fortunes.  The  new  system,  which  lays  more  stress  upon 
fair  trade  and  the  rights  of  employees,  has  material  goods 
so  distributed  as  to  make  for  friendship,  happiness  and  ideal- 
ism among  men.  The  old  system  had  for  its  slogan  "The 
public  be  damned!"  the  new  system  selects  as  its  watch-word 
"The  public  be  served !" 

The  Corporation  Discovers  Its  Soul 

The  legal  restrictions  now  imposed  upon  the  conduct  of 
business  by  public  sentiment  are  supplemented  and  made  more 
searching  through  the  influence  of  the  company's  stockholders, 
employees,  and  customers.  The  stockholders,  because  they 
are  so  numerous  and  in  general  unidentified,  have  all  but  ob- 
literated the  distinction  between  owner  and  public,  a  result 
which,  needless  to  say,  widens  immeasurably  the  responsi- 
bility of  the  company's  officials. 

The  employees  who  are  to  drive  a  large-scale  enterprise 
at  its  maximum  capacity  require  careful  selection,  training, 


454 


A  MAN  AMONG  MEN 


and  such  incentives  in  wages  and  esprit  de  corps  as  will  grip 
each  man  and  impel  him  to  do  his  best.  The  satisfying  of 
these  requirements  by  the  management  calls  for  the  human 
touch,  for  the  executive  qualities  which  characterize  the  ex- 
pert social  engineer. 

The  customers  are  reached  through  advertising,  a  method 
of  marketing  which  standardizes  quality  and  renders  misrep- 
resentation suicidal;  and  the  advertising  is  followed  up  by 
salesmen  armed  with  the  strongest  selling  tool  shrewd  sales- 
managers  have  yet  been  able  to  devise,  the  appeal  to  self- 
interest — what  our  goods  will  do  for  you — in  other  words, 
service.  The  proprietor  might  work  from  entirely  selfish 
motives  and  because  of  his  superior  ability  higgle  success- 
fully with  customers.  But  with  the  average  salesman,  par- 
ticularly in  retailing,  such  a  policy  is  dangerous.  Far  better 
the  one-price  system,  the  "quality"  article  which  begets  the 
salesman's  confidence,  the  conviction  amounting  almost  to  a 
certainty  that  these  goods  are  for  the  prospect's  own  best 
interest — since  these  things  give  him  power  to  insist,  a  dynamic 
friendship.  "Here  is  the  thing  in  a  nutshell,"  as  that  prince 
of  sales-managers,  President  Cottingham,  puts  it,  '*merit  be- 
gets confidence,  confidence  begets  enthusiasm,  and  enthusiasm 
conquers  the  world." 

In  trying  to  solve  the  very  practical  question  of  how  best 
to  deal  with  stockholders,  employees  and  customers,  the  cor- 
poration has  discovered  its  own  soul.  The  best  methods  of 
financing,  production  and  marketing,  it  has  found  to  depend 
upon  high  standards  of  truth,  fairness  and  service,  and  these 
when  practiced  have  resulted  in  a  profit-producing  power  far 
in  excess  of  interest  and  replacement  return  on  tangible  assets, 
a  good-will  which  so  long  as  it  can  be  held  deserves  its  in- 
clusion quite  as  much  as  plant  or  real  estate  in  the  capitaliza- 
tion. 


THE  NEW  IDEALS  OF  BUSINESS 


455 


The  Executive's  Service  Ideals 

What  of  the  man  at  the  top?  As  a  fountain  head  of  an 
organization  throbbing  with  business  ideaHsm,  the  old  narrow, 
greedy  type  assuredly  cannot  serve.  Changing  conditions 
evolve  new  standards  of  selection  and  due  to  these  a  different 
sort  of  business  executive  has  now  risen  into  prominence, 
emphasizing  the  co-operative  virtues  with  service  as  his  key- 
note. 

"Ultimately,"  so  runs  the  creed  of  Judge  Gary,  head  to- 
day of  the  world's  greatest  corporation,  "efficiency  is  based 
upon  a  policy  of  life  which  considers  first  the  claims,  needs 
and  deserts  of  the  other  fellow.  Generous  motives,  fair  prin- 
ciples, and  honest  dealings  are  vastly  more  important  as 
efficiency  measures  than  the  technical  phases  of  skilled  man- 
agement and  economical  production." 

This  creed  announced  by  Judge  Gary,  which  he  and  hun- 
dreds of  other  leaders  in  finance  and  industry  practice  today, 
would  have  impressed  the  magnates  of  the  old  school  as  too 
ethical  for  practical  purposes.  Yet  men  of  the  new  school 
are  not  finding  it  so. 

"Most  men  who  have  really  lived,"  declared  the  railroad 
king,  James  J.  Hill,  whose  death  was  widely  mourned  as  a 
national  loss,  "have  had  in  some  shape  their  great  adventure. 
This  railroad  is  mine."  Note  the  words.  The  Great  North- 
ern was  to  Hill  a  great  adventure  although  he  accepted  no 
salaries  serving  as  its  President,  Chairman  of  the  Board,  or 
Director;  refused  at  all  times  to  use  his  inside  information  in 
manipulating  the  stock  market;  and,  as  an  instance  among 
numerous  acts  of  like  nature  though  less  in  the  amounts  in- 
volved, turned  over  to  its  stockholders  at  cost  the  Missabe 
ore  lands  whose  purchase  price,  paid  by  his  own  money,  was 
$4,000,000  but  whose  real  value,  it  has  been  estimated,  is 
$750,000,000. 

Great  adventures,  in  truth,  are  open  to  the  business  man 


4S6 


A  MAN  AMONG  MEN 


now  as  heretofore.  But  society,  wedded  to  the  principle  of 
democracy  and  insistent  upon  such  an  equalization  of  oppor- 
tunity and  reward  as  will  in  general  evoke  the  full  powers  of 
all,  demands  that  these  great  adventures  be  confined  to  projects 
socially  expedient  and  that  their  promoters  accept  not  a  lesser 
but  a  somewhat  different  type  of  reward. 

"The  dividend  which  the  business  man  seeks  and  receives 
today  is  not  alone  in  dollars,"  explains  Andrew  Carnegie,  an 
enterpriser  of  the  old  school  who  is  remarkably  adaptive  to 
the  new  order,  nay,  more  than  that,  its  active  promoter.  "He 
receives  with  the  dollar  something  better — a  dividend  in  the 
shape  of  satisfaction  in  being  instrumental  in  carrying  for- 
ward to  higher  stages  of  development  the  business  which  he 
makes  his  life  work." 


Development  of  Social  Consciousness 

The  development  of  a  more  vivid  social  consciousness 
constitutes  for  most  men  perhaps  as  difficult  a  task  as  any. 
In  reality,  however,  it  calls  only  for  the  inclusion  of  more 
persons  and  more  territory  within  the  scope  of  the  relations 
which  men  usually  exercise  so  well  in  narrow  circles,  such  as 
the  family,  the  club,  or  the  neighborhood.  This  means  that 
a  man  is  to  recognize  his  wider  obligations  and  perform  them 
with  something  of  the  flesh-and-blood  interest  which  closer 
obligations  always  have  received: 

*'Every  man  who  by  eminent  success  in  commerce  or 
finance  raises  himself  beyond  his  peers,"  says  Otto  Kahn,  the 
well-known  financier,  "is  in  the  nature  of  things  more  or  less 
of  an  'irritant'  (I  use  the  word  in  its  technical  meaning)  to 
the  community. 

"It  behooves  him,  therefore,  to  make  his  position  as  little 
jarring  as  possible  upon  that  immense  majority  of  men  whose 
existence  is  spent  in  the  lowlands  of  life  so  far  as  material 
circumstances  are  concerned. 


THE  NEW  IDEALS  OF  BUSINESS 


457 


"It  behooves  him  to  remember  that  many  other  men  are 
working,  and  have  worked  all  their  lives,  with  probably  as 
much  effort  and  assiduous  application,  as  much  self-abnega- 
tion as  he,  but  have  not  succeeded  in  raising  themselves  above 
mediocre  stations  in  life,  because  to  them  has  not  been  granted 
the  possession  of  those  peculiar  gifts  which  beget  conspicuous 
success,  and  to  which,  because  they  are  very  rare  and  because 
they  are  needed  for  the  world's  work,  is  given  the  incentive 
of  liberal  reward." 

The  Enduring  Satisfaction  of  Business 

The  broad  tolerance  and  consideration  for  others,  of 
which  Mr.  Kahn  speaks,  prevailed  in  an  inspiring  way  during 
the  Great  War.  Men  of  affairs,  engineers,  executives,  and 
financiers,  in  the  finest  of  spirit  disregarding  every  oppor- 
tunity for  personal  profit,  served  their  country  whole-heart- 
edly because  it  was  their  country  and  the  ideals  for  which 
they  as  Americans  stood  were  at  stake.  They  endured  and 
conquered  with  a  morale  which  was  irresistible. 

The  ideals  maintained  steadfastly  and  so  high,  it  may  be, 
cannot  continue  unchanged  now  that  the  threat  of  Teuton  dom- 
ination is  withdrawn;  but  the  lofty  unselfishness,  the  whole- 
hearted service  of  which  we  justly  are  proud,  shall  in  part 
at  least  remain  as  a  permanent  gain.  The  idea  of  business  as 
merely  the  satisfaction  of  sordid  desires,  the  exploitation  of 
opportunity  for  personal  ends  solely,  the  willingness  to  wreck 
quite  as  readily  as  to  upbuild  provided  only  it  were  profitable, 
have  in  the  love  of  higher  things  and  the  imperious  call  for 
sacrifice  of  self  lost  in  large  measure  their  old-time  appeal. 

The  war  thus  has  hastened  a  process  which  inevitably, 
like  a  ferment,  has  been  for  years  working  itself  out  in  busi- 
ness. Its  ideal  is  service,  its  purpose  the  common  good,  its 
slogan  democracy,  its  achieving  instruments  all  forw^ard- 
looking  men.     Executives  enlisted  in  this  movement  not  only 


458  A  MAN  AMONG  MEN 

make  America  the  magnificent  but  secure  for  themselves  the 
enduring  satisfactions  of  business. 


Exercises 

In  this,  the  final  exercise,  let  us  ponder  over  certain  questions  which 
reach  down  to  fundamentals  and  lay  bare  our  philosophy  of  life. 

1.  Whom  do  you  admire  as  ideal  business  men?     What  qualities 
render  them  to  you  ideal? 

2.  Whom  do  you  regard  as  high-placed  misfits?     What  qualities 
in  them  does  it  appear  desirable  to  avoid  ? 

3.  Do  you  or  do  you  not  consider  service  the  foundation  of  suc- 
cess in  business? 

4.  Through  what  concrete  ways  can  you  keep  your  business  ideals 
high? 

5.  What  to  you  are  the  ends  most  to  be  desired  in  the  business 
career  ? 

The  answering  of  these  questions  sincerely  and  fully  calls  for  a 
searching  of  the  heart  such  as  a  man  permits  himself  only  when  in 
silence  alone  he  thinks  over  the  deeper  problems  of  destiny. 


CHAPTER  XXVII 

THE  GOAL  WHICH  MOVES  FORWARD 

The  first  concern  of  every  man  is  to  know  that  he  is  achiev- 
ing something,  advancing  in  material  wealth,  industrial, 
power,  intellectual  strength  and  moral  purpose. 

— James  J.  Hill. 

Yourself  That  is  To  Be 

In  the  foregoing  chapters  various  principles  and  details 
have  been  considered  which,  put  into  practice,  increase  execu- 
tive ability.  Considered  separately  some  of  these  principles 
may  have  seemed  trifling.  Even  though  they  be  trifles,  how- 
ever, they  all  go  to  build  up  the  able  executive,  and  the  man 
who  aspires  will  utilize  them  to  his  advantage.  In  order  that 
principle  and  detail  may  be  fitted  into  that  consistent  program 
which  moves  a  man  forward,  the  young  executive  needs  a 
vision  of  the  self  that  is  to  be. 

The  executive's  development  and  management  of  himself 
is  the  most  vital  problem  in  business,  because  none  other  lies 
so  near  the  heart  of  his  concern's  prosperity  or  failure.  Up  at 
the  top  of  every  business — at  the  apex  of  its  pyramid  of  func- 
tions— sits  someone  to  whom  all  lines,  wires  and  paths  of  com- 
munication lead,  the  focus  of  countless  records,  problems,  and 
plans;  from  whom  radiate  the  policies,  the  initiative,  and  the 
spirit  which  write  the  future  of  the  enterprise.  No  other  posi- 
tion is  so  hard  to  fill,  because  no  other  man  must  be  so  well 
rounded  and  evenly  poised. 

Men  are  not  well  rounded  and  evenly  poised  by  chance, 
but  become  so  only  after  more  or  less  arduous  and  long  con- 
tinued effort.     They  must  grow  into  the  self  that  is  to  be. 

459 


46o  A  MAN  AMONG  MEN 

Utilizing  the  Concrete  Opportunities 

The  man  who  looks  forward  will  appreciate  the  fact,  re- 
peatedly emphasized  in  the  foregoing  chapters  and  exercises, 
that  the  development  of  oneself  is  the  practical  thing  that  leads 
to  executive  success.  The  program  has  been  outlined  and  the 
concrete  opportunities  are  here. 

The  executive  cannot  walk  upon  the  streets,  enter  the  public 
library,  glance  through  the  newspapers,  consult  the  journals 
which  treat  his  specialty,  converse  with  people  worth  knowing, 
or  observe  the  progress  of  his  friends  without  becoming  a 
wiser  man.  More  than  this  he  cannot  fully  discharge  the  re- 
sponsibilities of  his  position  without  at  the  same  time  broaden- 
ing his  horizon  and  deepening  his  powers,  because  under  the 
conditions  of  today,  which  will  be  increasingly  true  of  condi- 
tions tomorrow,  all  the  opportunities  and  the  means  needed  by 
the  executive  for  his  self -development  can  be  compressed  into 
the  terse  phrase  study  your  business. 

"I  can  confidently  recommend  to  you  the  business  career," 
declares  Andrew  Carnegie,  "as  one  in  which  there  is  abundant 
room  for  the  exercise  of  man's  highest  power  and  of  every 
good  quality  in  human  nature.  I  believe  the  career  of  the 
great  merchant  or  banker  or  captain  of  industry  to  be  favor- 
able to  the  development  of  the  powers  of  the  mind  and  to  the 
ripening  of  the  judgment  upon  a  wide  range  of  general  sub- 
jects; to  freedom  from  prejudice  and  keeping  of  an  open 
mind." 

The  possibilities  which  Mr.  Carnegie  discovers  in  the 
business  career  can  be  realized  by  any  man  who  in  the  right 
spirit  studies  his  business.  Needless  to  say  this  study  should 
never  in  the  case  of  the  executive  be  simply  a  matter  of  mental 
gymnastics  but  comprehensive  carefulness  of  thought  followed 
hard  by  performance.  Study  your  business  when  translated 
literally  means  do  your  best. 

A  wonderful  efficiency  adheres  in  this  simple  rule.     The 


THE  GOAL  WHICH  MOVES  FORWARD  461 

man  who  does  his  best  invariably  grows.  Each  task  upon  its 
completion  leaves  him  an  expanded  capacity,  a  fertility  of  re- 
source, and  a  tested  strength  which  increasing  with  the  years 
represents  self-development  continuously  actualized. 

The  Road  to  Mastery — and  Its  Side  Paths 

How  far  shall  this  process  of  self -development  be  carried? 
Since  human  nature  is  never  cast  once  for  all  in  a  mold  but 
under  the  proper  treatment  is  subject  to  a  continual  refashion- 
ing, every  man  is,  in  a  very  real  sense,  the  architect  of  his  own 
fortunes.  Accordingly  this  inquiry  may  at  practically  any  time 
arise  in  his  mind.  What  lies  before  me — what  further  prog- 
ress can  I  make  ? 

While  not  often  do  men  openly  boast  that  they  have  reached 
the  pinnacle  of  possible  success,  the  drive-killing  thought  that 
already  the  goal  is  won  limits  generations  of  business  men. 
The  plaudits  of  a  small  organization  or  community,  the  subtle 
voice  of  flattery  coming  from  within,  too  often  prove  seductive 
and,  like  the  songs  of  Delilah,  bind  the  unwary  man  to  per- 
petual mediocrity. 

The  real  test  of  a  man  is  his  conduct  under  prosperity. 

Does  it  steal  away  the  hard  drive,  the  terrific  pace  which 
has  advanced  him  heretofore?  Does  it  leave  him  self-satis- 
fied and  complaisant,  an  easy  prey  to  the  first  lusty  competitor  ? 
Does  it  distort  beyond  measure  his  ego  and  substitute  rashness 
for  sound  judgment?  Does  it  induce  him  to  throw  away  his 
program  of  efficiency,  since  he  now  has  attained  all  that  is 
humanly  desirable? 

"As  our  success  began  to  come,"  remarks  John  D.  Rocke- 
feller in  reminiscencing  over  the  early  days  in  the  oil  industry, 
'T  seldom  put  my  head  upon  the  pillow  at  night  without  speak- 
ing a  few  words  in  this  wise :  'Now  a  little  success,  soon  you 
will  fall  down,  soon  you  will  be  overthrown.  Because  you 
have  got  a  start  you  think  you  are  quite  a  merchant;  look  out 


462 


A  MAN  AMONG  MEN 


or  you  will  lose  your  head — go  steady.'  These  intimate  con- 
versations with  myself,  I  am  sure,  had  a  great  influence  on  my 
life.  I  was  afraid  I  could  not  stand  my  prosperity,  and  tried 
to  teach  myself  not  to  get  puffed  up  with  any  foolish  notions." 

The  Man  Who  Moves  Forward 

The  real  builders  of  American  business  have  maintained 
balance  consistently — as  they  moved  forward.  In  the  small 
towns  and  farming  communities  from  which  they  were  re- 
cruited, they,  too,  were  once  proffered  by  admiring  friends  the 
same  chloroform  which  the  circumscribed  usually  accept  with 
such  shallow  pleasure.  But  in  their  case  the  antidote  was  ef- 
fectual :  They  possessed  the  power  to  grow  and  their  goal  was 
one  which  moved  forward. 

Who  would  not  emulate  them  and  likewise  enjoy  the  profits 
and  the  enduring  satisfactions  which  go  with  achievement? 
Deep  down  in  his  heart  a  man  finds  but  one  answer  to  this 
question:  "I  too  will  attain  my  maximum."  With  the  prin- 
ciples and  methods  of  self  development  and  management  as  a 
program,  he  disciplines  and  refines  his  native  capacity,  train- 
ing, directing  and  nurturing  it  in  faith  and  hope  and  charity. 

The  result  is  as  certain  as  anything  humanly  predictable. 
The  man  who  faithfully  schools  himself  in  these  principles 
and  methods  of  personal  management  can  with  perfect  con- 
fidence leave  the  future  to  itself;  growth  will  take  place  and 
the  harvest  is  his. 


PART  IX 
WHAT  TO  READ 

Ample  and  accurate  information  is  the  best  step  toward 
success  for  everyone;  and  the  world  of  historic  fact,  eco- 
nomic fact,  and  scientific  fact,  with  the  bearing  of  each 
upon  the  probable  future  of  human  effort,  is  now  so  large 
that  a  man  will  find  his  business  too  little  for  his  desire  to 
equip  himself  with  knowledge. — J.  J.  Hill. 

/  work  always,  I  ponder  things  deeply.  If  I  seem  always 
ready  to  reply  to  anything,  to  confront  anything,  it  is  be- 
cause, before  undertaking  anything,  I  have  thought  it  over 
for  a  long  time;  I  have  foreseen  everything  that  can  happen. 
It  is  not  genius  that  reveals  to  me  suddenly  what  I  must  say 
or  do  on  occasions  which  take  others  by  surprise,  it  is  re- 
flection; meditation.    I  work  all  the  time. — Napoleon. 


CHAPTER  XXVIII 

INTELLECTUAL  PREPAREDNESS 

For  I  dipt  into  the  future,  far 

As  human  eye  could  see ; 
Saw  the  vision  of  the  world,  and 
All  the  wonder  that  shall  he. 
f>  •  ,N        ^      /        -^-Tennyson. 

The  Future  Business  Leader 

In  the  doing  of  today's  work  a  man  should  train  his  powers 
with  an  eye  upon  tomorrow.  This  means  nothing  more  than 
foresight  appHed  to  personal  management;  a  preparing  now 
for  future  business  leadership. 

This  executive  to  come,  this  leader  who  will  swing  the  en- 
terprises which  are  to  be,  will  necessarily  possess  a  superior 
capacity.  No  petty  trader,  no  putterer  over  details,  no  mere 
hoarder  can  handle  the  complex  relations  of  such  an  enterprise 
nor  deal  efficiently  with  the  broad-gauge  problems  which 
characterize  its  development.  These  are  matters  for  whose 
solution  an  executive  must  dig  deep  into  economics,  sociology, 
the  relations  of  capital  and  labor,  and  the  complex  problems 
of  government  and  social  well-being.  He  will  have  to  work 
with  lawyers,  engineers,  chemists,  statesmen  and  economists. 
He  must  of  necessity  be  as  well  educated,  as  well  trained,  as 
well  disciplined  as  they. 

Broadness  of  perception  and  sympathy  will  be  required. 
This  business  leader  of  the  future  will  sense  the  inner  de- 
sires of  subordinates,  employees,  and  customers,  and  plan 
almost  intuitively  their  gratification.  He  will  know  the  public — 
the  common  people,  the  citizens  of  his  country.  Policies  and 
methods  of  doing  business  he  will  shape  with  due  considera- 

465 


466  WHAT  TO  READ 

tion  for  the  rights  and  sentiments  of  all  those  whom  he  sees 
fit  to  regard  broadly  as  his  co-workers. 

The  leader  in  a  free  country  necessarily  has  to  be  an  abler 
man  than  the  autocrat  who  rules  a  race  of  slaves  with  an  iron 
hand.  The  executive  who  dominates  a  factory,  a  commercial 
house  or  a  financial  institution  in  a  society  of  intelligent  and 
civilized  people,  jealous  of  their  own  rights,  quick  to  note 
fraud,  injustice  or  oppression,  must  be  a  dififerent  type  from 
the  profiteers,  the  audacious  business  barons,  the  commercial 
freebooters  who  upon  occasion  dominated  in  the  past. 

Constructive  business  team-work  is  something  higher  and 
more  difficult  in  its  leadership  than  bossing  a  section  gang; 
the  commanding  of  intelligent  and  capable  subordinates  calls 
for  more  skill  than  being  mate  over  a  crew  of  rough  sailors ; 
to  guide  a  business  enterprise  in  a  civilized  and  enlightened 
community  when  the  rules  of  the  game  protect  stockholder, 
employee  and  consumer  is  a  more  complex  undertaking  than 
was  the  pioneer's  rough  and  ready  task.  Business,  simply 
because  it  mounts  constantly  toward  a  higher  plane,  demands 
of  its  leaders  an  increased  capacity. 

Self-Culture  in  Business 

The  man  who  purposes  in  all  seriousness  to  develop  within 
himself  the  increased  capacity  demanded  of  the  future  execu- 
tive will  wring  valuable  knowledge  from  every  experience. 
Conferences,  conventions,  technical  experts,  friends  and  chance 
acquaintances,  books,  trade  journals,  mishaps,  successes,  and 
problems  faced,  alike  serve  him  as  stepping  stones  toward  a 
broader  knowledge  and  a  firmer  grasp  of  business.  This  is 
quite  as  it  should  be;  the  seeker  of  positive  impulses  will  get 
ahead. 

Opportunity  is  here  and  the  time  is  now ;  seek  those  positive 
impulses.  If  satisfactory  progress  is  not  being  attained,  it 
requires  only  an  examination  of  some  notable  career,  such 


INTELLECTUAL  PREPAREDNESS  467 

as  that  of  Lincoln,  Roosevelt,  Marshall  Field,  Carnegie,  or 
Schwab,  to  realize  how  puerile  are  the  excuses  for  non- 
advancement  with  which  a  man  is  accustomed  to  solace  himself ! 
"I  never  had  a  chance  to  go  to  college."  "I  have  no  time." 
"I  cannot  afford  it."  "I  am  too  tired  to  study."  Humiliation 
should  overcome  the  person  who  in  these  days  of  abundant  op- 
portunities for  self -culture  thus  deludes  himself.  Being  funda- 
mentally untrue,  these  excuses  prove  only  that  his  intentions 
are  not  serious. 

The  college  diploma  of  itself  does  not  guarantee  success; 
it  does  signify  training,  and  the  trained  mind  must  then 
carve  its  own  future.  But  this  training  which  the  colleges 
offer,  a  great  many  master  achievers  have  seen  fit  to  work  out 
for  themselves  in  the  midst  of  practical  affairs.  By  persist- 
ent self -direction  they  broadened  their  knowledge,  disciplined 
their  powers,  and  developed  fertility  and  resource  in  solving 
problems.  This  persistance  it  was,  and  neither  the  possession 
of  a  college  diploma  nor  the  lack  of  it,  which  made  them 
great. 

Making  the  Most  of  Opportunity 

Twenty-four  hours  a  day  is  granted  each  man :  no  one  has 
more.  While  the  possibilities  of  spare  moments-  are  truly 
astonishing  as  can  be  proved  by  whoever  will  assiduously  utilize 
them,  they  are  far  surpassed  by  the  possibilities  of  studying 
as  we  work.  Since  each  task,  no  matter  how  humble  it  be, 
is  connected  up  with  all  other  activities  of  the  organization  and 
through  those  with  business  in  general,  it  remains  for  a  man 
to  determine  whether,  a  passive  toiler,  he  shall  degenerate  into 
a  cog,  or  alert  and  positive,  eager  to  inquire  and  insatiable  for 
knowledge,  he  makes  of  business  a  real  profession. 

The  man  who  refuses  to  develop  himself  in  the  belief  he 
cannot  afford  the  time  and  money  closes  his  eyes  to  the  wastes 
disclosed   by   Bradstreet's.     Incompetence   in    191 5    wrecked 


468  WHAT  to  READ 

5,689  businesses,  inexperience  cost  an  additional  1,057  failures, 
lack  of  capital  5,229  more.  Who  loses  money  when  the  prop- 
rietor refuses  to  study  finance  and  business  management,  or 
to  profit  by  the  experience  of  successful  men?  'let  these  ac- 
tual losses  are  much  less  and  scarcely  more  deplorable  than 
the  failure  to  secure  those  profits  which  the  trained  man  does 
secure.  The  efficient  man  does  more  than  avoid  losses;  he 
discovers  profits  otherwise  hidden  and  makes  them  real.  To 
him  the  cost  of  self -development  is  truly  not  expense  but  in- 
vestment. 

The  condition  of  being  too  tired  commonly  indicates 
nothing  more  than  faulty  habits  of  diet,  posture  and  breath 
control,  insufficient  sleep  and  exercise,  needless  strains  and  un- 
productive expenditures,  and  particularly  a  flabby  will  unable 
to  transform  sluggishness  into  force  and  vital  power.  Self- 
development  can  alter  these  below-par  conditions  since  its  pro- 
gram deals  with  both  the  production  of  force  and  its  proper 
conservation,  a  program  of  personal  dynamics  which  the  tired 
man  most  of  all  needs. 

These  and  sundry  other  excuses  which  would  make  us 
victims  of  our  "worser"  selves  can  all  be  routed  in  one  way  or 
another  by  whomsoever  desires  to  grow.  This  expresses  in 
one  sentence  the  message  which  the  nation's  most  revered  hero 
illuminated  by  his  entire  life. 

The  Making  of  a  Great  Character 

The  rude  life  of  the  backwoods  in  the  midst  of  which  he 
was  born  and  where  his  early  years  were  spent  might  well  have 
appeared  fated  to  yield  Abraham  Lincoln  an  equally  common- 
place and  secluded  career.  No  doubt  this  would  have  oc- 
curred had  he  not  laid  hold  of  every  opportunity  for  self- 
impro  'ement,  of  which  the  following  instance  is  typical. 

"One  day  a  man  who  was  migrating  to  the  West,"  said  Mr. 
Lincoln  in  relating  the  incident  several  years  later,  "drove  up 


INTELLECTUAL  PREPAREDNESS  469 

in  front  of  my  store  with  a  wagon  which  contained  his  family 
and  household  plunder.  He  asked  me  if  I  would  buy  an  old 
barrel  for  which  he  had  no  room  in  his  wagon,  and  which  he 
said  contained  nothing  of  special  value.  I  did  not  want  it,  but 
to  oblige  him  I  bought  it,  and  paid  him,  I  think,  half  a  dollar 
for  it.  Without  further  examination  I  put  it  away  in  the  store, 
and  forgot  all  about  it.  Sometime  after,  in  overhauling  things, 
I  came  upon  the  barrel,  and  emptying  it  upon  the  floor  to  see 
what  it  contained,  I  found  at  the  bottom  of  the  rubbish  a  com- 
plete edition  of  Blackstone's  Commentaries.  I  began  to  read 
this  famous  work,  and  I  had  plenty  of  time;  for  during  the 
long  summer  days,  when  the  farmers  were  busy  with  their 
crops,  my  customers  were  few  and  far  between.  The  more  I 
read  the  more  intensely  interested  I  became.  Never  in  my 
whole  life  was  my  mind  so  thoroughly  absorbed.  I  read  until 
I  devoured  them." 

This  instance,  one  of  many  of  like  nature,  reveals  a  great 
character  in  the  process  of  being  forged.  In  the  log  cabins 
of  the  pioneers  poring  over  the  only  copy  of  Kirkham's  Gram- 
mar the  community  afforded,  in  the  country  debating  societies 
developing  his  ability  as  a  public  speaker,  in  the  stuffy  hotel 
bedroom  with  a  candle  by  his  side  studying  the  demonstrations 
in  the  first  six  books  of  Euclid  while  his  brother  lawyers  slept, 
in  court-room,  halls  of  Congress  or  White  House,  Lincoln 
was  always  exhibiting  the  one  trait  which  more  than  any  other 
accounts  for  his  marvelous  advance — power  to  grow. 

The  man  who  determines  that  he,  too,  shall  grow  must  not 
stop  at  that.  He  must  supply  his  mind  with  the  materials  with 
which  growth  can  take  place.  The  reading  of  good  business 
books,  supplementing  as  it  does  the  preceding  chapters  and 
exercises,  aids  most  decidedly  in  charting  the  way  toward 
broader  conceptions. 

A  good  book  has  compressed  into  its  pages  the  author's  life 
experience,  and  the  reading  of  it  affords  an  entirely  feasible 
method  of  increasing  the  mental  stature. 


CHAPTER  XXIX 

BOOKS  FOR  THE  BUSINESS  MAN 

The  man  who  applies  himself  seriously  to  thinking 
will  by  and  by  be  amazed  to  find  out  how  much  there 
is  to  think  about. — Otto  H.  Kahn. 

A  Broad  Effectiveness 

In  order  to  render  the  reading  of  the  books  which  follow 
more  systematic,  the  various  titles  are  grouped  in  such  a  way 
that  a  more  or  less  organized  course  of  study  results.  The 
divisions  themselves  in  each  case  cover  subjects  of  such  im- 
portance that  whoever  studies  them  will  inevitably  broaden  his 
horizon,  train  his  powers,  and  make  himself  to  a  greater  degree 
an  educated  person. 

Business  Management 

The  study  of  personal  management  naturally  merges  into 
business  management  in  general.  The  books  here  specified 
excellently  present  various  important  phases  of  business  man- 
agement. 

Taylor,  Frederick  W.  The  Principles  of  Scientific  Management. 
Harper  Bros.,  New  York.     191 1. 

Gowin,  Enoch  Burton.  The  Executive  and  His  Control  of  Men.  The 
Macmillan  Co.,  New  York.     1915. 

Galloway,  Lee.  Office  Management.  Ronald  Press  Co.,  New  York. 
1918. 

Jones,  Edward  D.  The  Administration  of  Industrial  Enterprises. 
Longmans,  Green  &  Co.,  New  York.     1916. 

Diemer,  Hugo.  Factory  Organization  and  Administration.  McGraw- 
Hill  Publishing  Co.,  New  York.     1910. 

Thompson,  Clarence  B.  Scientific  Management;  a  collection  of  the 
most  significant  articles  describing  the  Taylor  system  of  manage- 
ment.   Harvard  University  Press.     1914. 

470 


BOOKS  FOR  THE  BUSINESS  MAN 


471 


Twyford,  H.  B.     Purchasing.     D.  Van  Nostrand  &  Co.,  New  York. 

1915- 
Twyford,  H.  B.     Storing.   D.  Van  Nostrand  &  Co.,  New  York.   1918. 


Marketing 

All  executives  in  an  organization  are  concerned,  either 
directly  or  indirectly,  in  the  sale  of  the  company's  product. 
This  sales  activity  has  received  careful  thought  of  late  years, 
much  of  the  results  of  which  will  be  found  presented  in  sum- 
marized form  in  the  following  books: 

Nystrom,  Paul  H.     Economics  of  Retailing.     Ronald  Press  Co.,  New 

York.     1919. 
Cherington,  Paul  T.     Advertising  as  a  Business  Force.     Doubleday, 

Page  &  Co.,  New  York.     1913. 
Tipper,    Hotchkiss,    Holling^orth,    and    Parsons.     Advertising — Its 

Principles  and  Practice.     Ronald  Press  Co.,  New  York.     19 19. 
Fisk,  James  W.     Retail  Selling;  a  guide  to  the  best  modern  practice. 

Harper  Bros.,  New  York.     1916. 
Whitehead,  Harold.     Principles  of  Salesmanship.     Ronald  Press  Co., 

New  York.     1917. 


Finance 

The  development  of  the  corporate  form  of  organization 
and  the  necessity  for  a  closer  financial  control  through  budgets, 
emphasizes  strongly  to  the  modern  executive  the  importance  of 
a  thorough  knowledge  of  finance.  The  careful  reading  of  these 
books  will  go  far  to  supply  such  knowledge. 

Dewing,  A.  S.     The  Financial  Policy  of  Corporations.     Ronald  Press 

Co.,  New  York.     1919. 
Lyon,    Walter    H.     Corporation    Finance.     Houghton    Mifflin    Co., 

Boston.     1916. 
Pratt,  Sereno  S.     The  Work  of  Wall  Street.     D.  Appleton  &  Co., 

New  York.     1912. 
Clay,    Paul.     Sound    Investing.     Moody    Magazine    and    Book    Co., 

New  York.     19 15. 
Lough,    William    H.     Business    Finance.    Ronald    Press    Co.,    New 

York.     1917. 


472  WHAT  TO  READ 

Babson,  Roger  W.  Business  Barometers  Used  in  the  Accumulation 
of  Money.     Babson's  Statistical  Organization,  Boston.     1916. 

Conyngton,  Thomas.  Corporate  Organization  and  Management. 
Ronald  Press  Co.,  New  York.     1918. 


Accounting 

The  necessity  of  adequate  records  and  the  various  steps  in 
the  process  from  original  entry  to  balance  sheet  were  indicated 
in  a  preceding  chapter.  The  following  works  discuss  all  such 
matters  with  a  considerable  thoroughness,  and  thus  supply  in- 
formation essential  to  the  well-rounded  executive. 

Kester,  Roy  B.  Accounting,  Theory  and  Practice.   Ronald  Press  Co., 

New  York.    Vol.  I  1917.     Vol.  II  1918. 
Klein,   Joseph  J.     Elements   of   Accounting;   Theory   and   Practice. 

D.  Appleton  &  Co.,  New  York.     191 5. 
Hatfield,  Henry  R.     Modern  Accounting.     D.  Appleton  &  Co.,  New 

York.     1909. 
Esquerre,  Paul  J.     Applied  Theory  of  Accounts.     Ronald  Press  Co., 

New  York.     1914. 
Montgomery,   Robert   H.   Auditing,   Theory   and   Practice.      Ronald 

Press  Co.,  New  York.     1916. 
Nicholson,  J.  Lee  and  Rohrbach,  J.  F.  D.     Cost  Accounting.     Ronald 

Press  Co.,  New  York.     1919. 

Economics 

The  foregoing  books  present  phases  of  business  with  which 
every  executive  has  to  deal.  It  may  be  that  he  deals  with 
them  at  such  close  range  that  he  cannot  "see  the  woods  for 
the  trees."  At  any  rate,  whether  he  is  overburdened  with 
details  or  simply  wishes  a  comprehensive  view  in  order  to  in- 
crease effectiveness,  economics  will  prove  helpful,  since,  with 
respect  to  the  above  four  subjects,  it  deals  with  general  prin- 
ciples. 

Carver,  Thomas  N,    Principles  of  Political  Economy.     Ginn  &  Co., 

Boston.     1919. 
Ely,  Richard  T.  and  Wicker,  George  R.     Elementary  Principles  of 

Economics.     The  Macmillan  Co.,  New  York.     191 7. 


BOOKS  FOR  THE  BUSINESS  MAN 


473 


Taussig,  Frank  W.     Principles  of  Economics.     The  MacMillan  Co., 

New  York.     1918. 
Haney,    Lewis    H.     Business    Organization    and    Combination.     The 

Macmillan  Co.,  New  York.     1914. 

Business  Law 

A  knowledge  of  business  law  is  a  decided  asset  to  any  ex- 
ecutive, even  though  he  is  not  a  specialist  in  charge  of  the  legal 
phases  of  his  company's  business.  The  following  books  pre- 
sent the  essentials  of  business  law  in  an  interesting  and  non- 
technical way. 

Conyngton,     Thomas.     Business     Law.     Ronald     Press     Co.,     New 

York.     1918. 
Huffcut,  E.  W.     Elements  of  Business  Law.     Ginn  &  Co.,  Boston. 

1917. 
Parson,    T.     Laws    of    Business.     S.    S.    Scranton    Co.,    Hartford, 

Conn.     1914. 
Sullivan,  John  J.     American  Business  Law.     D.  Appleton  &  Co.,  New 

York.     1912. 

The  Scientific  Method 

The  executive  should  know  business  thoroughly,  that  is 
certain;  yet  in  order  to  do  this  he  must  be  a  scientist.  While 
this  does  not  mean  that  he  shall  work  with  test  tubes  and  labo- 
ratory, it  does  imply  that  the  methods  of  science  are  to  mold 
his  habits  of  thought.  The  attainment  of  this  much-to-be- 
desired  result  will  be  hastened  through  the  study  of  the  books 
which  follow. 

Dewey,  John.    How  We  Think.    D.  C.  Heath  &  Co.,  New  York.    19 10. 

Creighton,  James  C.  Introductory  Logic.  The  Macmillan  Co.,  New 
York.     1909. 

Copeland,  Melvin  T.  Business  Statistics.  Harvard  University  Press, 
1917. 

Brinton,  Willard  C.  Graphic  Methods  for  Presenting  Facts.  En- 
gineering Magazine  Co.,  New  York.     1914. 

Pearson,  Karl.  Grammar  of  Science.  The  Macmillan  Co.,  New 
York.     191 1. 


474 


WHAT  TO  READ 


Health  and  Mind  Culture 

The  securing  of  the  most  effective  results  from  his  own 
body  and  mind  is  about  as  practical  as  any  problem  with  which 
the  executive  can  be  faced.  It  is  the  purpose  of  health  and 
mind  culture  to  apply  science  in  this  respect  to  a  person's 
management  of  himself. 

Fisher,  Irving  and  Fisk,  Eugene  Lyman.  How  to  Live;  rules  for 
healthful  living,  based  on  modern  science.  Funk  and  Wagnalls, 
New  York.     191 7. 

Sadler,  WilHam  Samuel.  Science  and  Living;  or  the  art  of  keep- 
ing well.     McClure  Book  Co.,  New  York.     1910. 

Seashore,  Carl  Emil.  Psychology  in  Daily  Life.  D.  Appleton  & 
Co.,  New  York.     1913. 

James,  William.  Talks  to  Teachers  on  Psychology:  and  to  students 
on  some  of  life's  ideals.     Henry  Holt  &  Co.,  New  York.     1899. 

Bennett,  Enoch  Arnold.  How  to  Live  on  Twenty-Four  Hours  a  Day. 
The  Doran  Co.,  New  York.     1910. 

Marden,  O.  S.  Pushing  to  the  Front.  Crowell  Publishing  Co.,  New 
York.     191 1. 

Hollingworth,  H,  C.  and  Poffenberger,  A.  T.  Applied  Psychology. 
D.  Appleton  &  Co.,  New  York.     1917. 

Natural  and  Social  Sciences 

The  study  of  natural  and  social  sciences  very  likely  will  im- 
press the  average  reader  as  more  interesting  and  quite  as  help- 
ful as  that  of  the  scientific  method.  Certain  of  the  books  cited 
bear  directly  upon  business  problems  and  all  of  them  afford 
in  addition  to  their  information  an  extremely  valuable  point 
of  view. 

Scott,  Walter  D,     Influencing  Men  in  Business.     Ronald  Press  Co., 

New  York.     1916. 
Tead,  Ordway.     Instincts  in  Industry.     Houghton  Mifflin  Co.,  New 

York.     1918. 
Ward,  L.  F.     Applied  Psychology.     Ginn  &  Co.,  Boston. 
Blackman,  F.  W.  and  Gillen,  J.  R.     Outlines  of  Sociology.     The  Mac- 

millan  Co.,  New  York.     191 5. 
Judd,    John    W.     Coming   of    Evolution.     (Cambridge    Manuals    of 

Science  and  Literature.)     Putnam's,  New  York.     1910. 


BOOKS  FOR  THE  BUSINESS  MAN  475 

Jordan,  David  Starr  and  Kellogg,  V.  L.    Animal  Life.     D.  Appleton 

&  Co.,  New  York. 
Hollingworth,  Harry  L.     Vocational  Psychology;  its  problems  and 

methods.     D.  Appleton  &  Co.,  New  York.     1916. 
Brigham,  Albert  P.     A  Text  Book  of  Geology,     D.  Appleton  &  Co, 

New  York.       1901. 

Biography 

When  forging  ahead  in  business  a  man  often  feels  the  need 
of  that  inner  rejuvenation  of  the  spirit  which  comes  best  from 
the  study  of  some  great  character.  Biographies  such  as  the 
following  thus  perform  a  useful  service. 

Roosevelt,    Theodore.     Autobiography.     The    Macmillan    Co.,    New 

York.     1913. 
Pyle,  V.  G.     Life  of  J.  J.  Hill.     Doubleday,  Page  &  Co.,  New  York. 

1917. 
Tarbell,  Ida  M.     The  Life  of  Abraham  Lincoln.     The  Macmillan  Co., 

New  York.     1900:  191 1. 
Franklin,  Benjamin.     Autobiography.     Not  copyrighted. 
Rockefeller,  John  D.     Random  Reminiscences  of  Men  and  Events. 

Doubleday,  Page  &  Co.,  New  York.     1909. 
Forbes,  B.  C.     Men  Who  Are  Making  America.     B.  C.  Forbes  Co., 

Inc.,  New  York.     1917. 
Johnston,  R.  M.     The  Corsican :  a  diary  of  Napoleon's  life  in  his  own 

words.     Houghton,  Mifflin  Co.,  New  York.     1910, 

Correspondence  Courses 

The  demand  of  executives  for  a  knowledge  of  business 
broader  and  sounder  than  heretofore  has  resulted  not  only  in 
the  writing  of  many  books  but  also  in  the  development  of 
correspondence  courses  devoted  to  business  principles  and 
methods.  The  service  afforded  by  the  better  of  these  schools 
is  worthy  of  consideration  by  the  progressive  business  man. 

Current  Publications 

The  careful  reading  of  the  best  business  publications,  such 
as  the  following,  keeps  a  man  mentally  alive  and  up-to-date. 


476  WHAT  TO  READ 

System.    Monthly.    A.  W.  Shaw  Co.,  Chicago. 

Printers'  Ink.     Weekly.     Printers'  Ink  Publishing  Co.,  New  York. 

Industrial  Management.     Monthly.     The  Engineering  Magazine  Co. 

New  York. 
Factory.    Monthly.     A.  W.  Shaw  Co.,  Chicago. 
Journal  of  Accountancy.    Monthly.    Ronald  Press  Co.,  New  York. 


INDEX 


Ability, 

opportunities     numerous     for     use 

of,  7 
salary  proportioned  to,  5 

Acceleration,    by    graphic    presenta- 
tion, 274-277 

Accounting,  list  of  books  on,  472 

Accuracy,  as  a  test  of  reasoning,  238- 
242 

Action,  thought  followed  by,  185 

Advancement,  in  position,  conditions 
affecting,  5-6 

Agar-agar,  Japanese  intestinal  rem- 
edy, 308 

Air,  as  an  energizer,  302-304 

Alertness,  a  business  asset,  202-203, 
211-213 

American  Magazine,  The,  122 

quotations     from,    on     Roosevelt's 
handling  of  callers,  154-155 

American  Society  of  Mechanical  En- 
gineers, 
rules    of,    for    standardization    of 
graphic  methods,  286-288 

Amiability,  as  a  business  asset,  439 

Analogy,  accuracy  of,  in  testing  ideas, 
239-240 

Analysis, 
importance  of,  220-222 
of  executive's  problems,  232-247 
problems  in,  242-244 

Animal  psychology,  lesson  from,  159- 
160 

Annalist,  The,  reports  in,  260-262 

Appearances,  personal,  442-443 

Apprenticeship,    for    high    executive 
positions,  15 

Architect's  office  system,  54 

Army,    lessons    in    physical    energy 
from  our,  314-315 

Association,   rules   of,  as   factors   in 
memory,  92-96 

Atmosphere  of  achievement,  329-330 


Attention,  as  a  factor  in  will-power, 

323-325 
Auditor's  daily  schedule,  115 

B 

Babson's  Statistical  Organization, 
publications  by,  265-266 

Bacon,  Lord,  quoted  on  defects  of 
human  understanding,  224-225 

Bahnsen,  quoted  on  moral  will,  185 

Bain,  Professor,  quoted  on  mental 
progress,  186-187 

Balanced  judgment,  maintained  con- 
sistently, 462 

Bank  cashier's  daily  schedule,  117 

Bank  clearings,  as  index  of  volume 
of  business,  262-263 

Barbour,  George  H.,  quoted  on  de- 
veloping personality,  440 

Barometers,  business,  259-270 

Bedford,  A.  C,  quoted  on  reasons  for 
advancement   in  position,  9-10 

Berthelot,  French  General,  graphic 
methods  used  by,  in  the  Great 
War,  275-276 

Bethlehem  Steel  Co.,  experiment  at, 
in  scientific  management,  427- 
428 

Bibliography  of  business,  470-476 

Big  dreamy  idea,  the,  139-140 

Biographies,  list  of,  475 

Boards,  use  in  displaying  data,  279- 
280 

Books  for  the  business  man,  470-476 

Borrowing  as  a  method  of  financing 
a  business,  391-394 

Bradstreet's  "index  numbers,"  261 
records  of  business  wastes,  467-468 

Bran,  simple  remedy  for  constipation, 
308 

British  Government,  commercial 
agent  for  U.  S.,  434 

Brookmire  Economic  Service, 
chart  from,  268 
publications  of,  265-266 


477 


478 


INDEX 


"Brain-box,"  idea  file,  34-37 
"Brain  foods,"  357 
Budget  plan,  for  controlling  expendi- 
tures, z^^-z^g 
Burke,  Edmund,  quoted  on  develop- 
^  ment  of  mental  attitudes,  ZZ^ 
"Business  Law,"  by  Thomas  Conyng- 

ton,  quotation  from,  410-41 1 
Business  time  for  business,  161 
Buyers,  course  for,  needed,  zn 
Buying  periods  for  securities,  385 
By-products,  utilization  of,  by  large 
scale  businesses,  423 


Callers,  handling  of,  145-155 
Calories,  measure  of  food  values,  298, 

299 
Camp,  Walter,  health  suggestions  of, 

317 
Capital, 
productive,  380 

sufficient,  a  factor  in  successful  en- 
terprise, 368,  370,  397-399 
Capitalizing    attainments    as    habits, 

chart  for,  192 
Carbon  copies,  as  short-cuts,  166 
Carey,   General,   extemporized   army 

of,  455 
Carnegie,  Andrew,  quoted  on, 
business  men,  rewards  of,  456 
development,  personal,  through  the 

business  career,  460 
investments,  384 
judgment,  business,  218 
opportunities,  business,  201 
Cash  payments,  plan  of,  27^-277 
Cash  register,  the  first,  202-203 
Cassatt,    President    of    Pennsylvania 
Railroad,     encouragement     of 
new  ideas  by,  207 
Centralization   of   ownership,    devel- 
opment of,  418-422 
Cerebellum,     director    of    voluntary 

muscles,  181 
Cerebrum,  the  general  manager,  181- 

183 
Chain  store  system,  420-421 
Chalmers,  Hugh,  126-127 
Chance,  elimination  of,  251-252 
Character,   the   premier   co-operative 

virtue,  438-439 
Charge   accounts,    disadvantages'   of, 

376-377 


Charts,  use  of,  in  graphic  presenta- 
tion, 278-284 
Check  marks, 
chart  illustrating,  162 
use  of,  to  save  writing,  161-162 
Cleveland,   Grover,  thorough  studies 

of,  221 
Clothes,  442-443 
Clouston,   Scottish  physician,   quoted 

on  relaxation,  349-350 
Color  schemes,  as  short-cuts,  166 
Commercial     instinct,     as     a     guard 
against      impractical      enthusi- 
asms, 215-217 
Communication,    devices    for    office, 

55-56 
Concentration,  mental,  323-326,  341 
Confidence,  a  business  asset,  391-392 
Conservation, 
human,  350-351 
of  time,  161 
"Constants,"  a  type  of  daily   activi- 
ties-, I 12-1 13 
Constipation,  worst  of  anti-efficiency 

maladies,  307-309 
Constructive  and  routine  thought,  195 
Control  curves,  figure  for,  284 
Conyngton,  Thomas,  quotation  from 

"Business   Law"  by,  410-41 1 
Co-operation,  434-447 
as   a   factor   in   dispatching   work, 

142-145 
executive,  must  lead  the  way  in,  80 
test  chart  on,  447 
Corporation, 

description  of,  395-397 
discovers  its  soul,  453-455 
Correspondence, 
dictation  of,  165 

machines  for,  166 
dispatch  in  handling  of,  165 
form  letters,  171-172 
form  paragraphs  for,  167-172 
training  secretaries  to  handle,  76-79 
Correspondence  courses,  475 
Costs,  elements  of,  figure,  252 
Cottingham,  Walter  H., 
"Forward    Again    Campaign"    of, 

327-329 
quoted  on, 
ideal  of  service,  454 
importance  of  having  aims,  107 
"playing  the  game,"  446 


INDEX 


479 


Creative, 
thinking,  209-211 

work,  influence  of  habit  upon,  187- 
188 

Currency  statistics,  as  index  to  busi- 
ness conditions,  264 

Curtis  Commercial  Research  Divi- 
sion, report  by,  on  business 
done  by  leading  stores,  420 

Curves,  the  graphic  device  par  ex- 
cellence, 284-286 

Cycles  of  business,  259 


Davison,  Henry,  P.,  selection  of,  as 
partner  to  J.  P.  Morgan,  anec- 
dote, 395 
Day's  work, 
file,  47-49 

four  usual  types  of  tasks  in,  iio-iii 
Decision,  a  factor  in  mental  economy, 

354 
Definite  accomplishment,  340-341 
Definition  of  terms,  first  step  in  test- 
ing an  idea,  235 
Delegation  of  details,  chart  for  per- 
sonal test  for,  82 
Department  stores,  420 
Desk, 
executive's    workshop,    44 
tools,  52-53,  61-62 
Details, 
delegation  of,  to  subordinates,  by 

John  D.  Rockefeller,  65 
personal    test    of    handling,    chart 

for,  82 
principles  of  handling,  21-24 
Dewey,     Professor,    quoted    on    the 

trained  mind,  227-228 
Dictation,  machines  for,  166 
Dictograph,  use  of,  by  executive,  55 
Diet,  healthful,  298-301 
Discipline,  self,  333-334 
Diseases, 
mortality  from  seven  worst,  295 
wastes  from  preventable,  295-297 
Dispatching, 

railroad,  135-136 
the  day's  work, 
preparations  for,  140-141 
test  chart  for,  158 
Distractions,  elimination  of,  353, 

354 
Distribution,  improvements  in, 


merchandise,  chart  showing,  419 

opportunities  for,  198 
Domination,  mental,  321-322 
Drugs,  habit-forming,  305-306 
Duke,  James  B.,  quoted  on  qualities 
necessary  to  business   success, 

ID 

Dun's  "index  numbers,"  264 

E 

Easton,      President      of      Columbia 
Graphophone    Co.,    quoted    on 
importance  of  system  and  fore- 
sight,  108 
Economics,  list  of  books  on,  472 
Economy, 
mental,  337-3^1 

of  well-planned  activities,   112-113 
Edison,  Thomas  A., 
ability  in  choosing  essentials,  223 
practical  inventor,  216-217 
quoted  on, 

persistence,  value  of,  to  inventor, 

318-319 
sleeping  habits,  347 
Education,  466-476 
improvement,  need  and  means  of, 
466-469 
Efficient  management  a  factor  in  suc- 
cessful enterprise,  368-370 
Emerson,  Harrington,  quoted  on  rail- 
road dispatching,  135-136 
Emerson,   Ralph   Waldo,   quoted   on 

health,  297 
Essential, 
data,   256 

facts,  gained  through  graphic  pres- 
entation, 277 
Essentials,  getting  at,  222-224 
Evidence,  testing  of,  232-236 
Executive, 
ability,  demand  for,  7-8 
advancement  of,  conditions  affect- 
ing, 5-6 
capacity,  test  chart  for  rating,  433 
duties  of,  diagram  showing  analy- 
sis of,  431 
essentials  of  work  of,  426-427 
must  delegate  and  standardize,  80- 

81 
observation     of     the      successful, 

learning  through,  12 
opportunities   of,  in   American   in- 
dustries-, 7 


48o 


INDEX 


Executive  (Continued) 
position  of,  diagram  showing,  430 
qualities    necessary     for    advance- 
ment, quotation  on,  9-10 
salaries,  5 

securing   of,    within    an    organiza- 
tion, 8 
Extension  courses,  408 


Fads  versus  common  sense,  356-359 
Faraday,  Michael,  quoted  on  selection 

of  ideas,  230 
Farnham,  Dwight  T.,  quoted  on  value 

of  graphic  presentation,  290 
Farwell,  John  V.,  quoted  on  having 

definite  aims,  125 
Fatigue     and     inefficiency,     339-341, 

345-346 
Field,  William  A.,  quoted  on, 

delegation   and   standardization  by 

executives,  80 
function  of  the  manager,  429 
Field,  Superintendent  of  Illinois  Steel 
Co.,  quoted  on  means  of  devel- 
oping new  ideas,  208 
Filing, 

short-cuts  of,  163-164 
systems, 

for  executive's  desk,  47-50 
forms  of,  33-34 
purposes  of,  32-33 
tests   for,  40-42 
uses  of,  36-39 
Finance, 
books  on,  list  of,  471 
power  of,  365-370 
rules  of,  by  Wm.  H,  Lough,  411-412 
Financial  and  Commercial  Chronicle, 

reports  in,  263,  265 
Financial  preparedness,  371-372,  374 
"Financing  an  Enterprise,"  by  Fran- 
cis Cooper,  reference  to,  on  in- 
vestments 388 
Financing  of  a  business,  38^399 

methods  of,  389-397 
Fisher,  Irving,  quoted  on, 
health-ideas,  296 
"overwork"  delusion,  358 
Fitch,   George,  quoted   on   President 
Roosevelt's  method  of  handling 
callers,   I54-I55 
Fluctuations   in   value,   opportunities 

for  business  gain  in,  198-199 
Food  for  the  efficient  worker,  299-302 


Forbes'  Magazine,   quoted   on   thirty 

largest  fortunes,  201 
Ford,  Henry, 

quoted    on    qualities    necessary    to 

success  of  executive,  10 
standardization  by,  177-178 
Forecasting,  made  possible  by  statis- 
tical knowledge,  267,  269-271 
Form, 
letters,  171- 172 
paragraphs,  167-172 
standardized,  255-256 
Fortunes, 
colossal,  based  on  thrift,  381 
thirty  largest,  201 
Franklin,  Benjamin, 
plan  of,  for  control  of  habits,  i8g- 

191 
quoted  on  thrift,  374 
Frick,  H.  C,  the  "coke  king,"  story 

of,  371-372 
Fundamental  data,  study  of,  261-262 


Ganglia,   function  of,   181 

Gantt,  Henry  L.,  quoted  on  manage- 
ment,  2S4 

Gary,  Elbert  H., 

method  of  handling  callers,  149-150 
power  and  personal  enterprise  of,  4 
quoted  on  business  ideals,  455 

Geddes,  Sir  Eric,  dynamic  power  of, 
355-356 

General    Electric    Company,   problem 
solution  in,  illustrated,  226-227 

General  store,  418 

German  drive  of  March,  1918,  445 

"Get-rich-quick"  schemes,  387-388 

Glass  desk  top,  uses  of,  53-54 

Goal  setting,  328-329 

Good-will,  winning  of,  439-442,  455 

Goodyear,  Charles,  inventor,  discov- 
eries by,  203,  215-216 

Gould,  Jay,  operations  by,  451 

Graphic  presentation,  272-290 

H 

Habits, 
and  specialization,  341-342 
control  of,  by  Benjamin  Franklin, 

189-191 
formation  of,  185-187 


INDEX 


481 


Habits    {Continued) 

influence  upon  creative  work,  187- 

188 
standardized  nerve  action,   177-183 
which  kind?  184 
Hanan,  John  H.,  quoted  on  value  of 

analysis,  222 
Harriman,  Edward  H., 
business  methods  of,  451 
studies  made  by,  221 
unusual  memory  of,  due  to  associa- 
tion of  details  by,  95-96 
Health, 
builders,  "patent,"  358-359 
"cults"  and  "isms,"  297 
culture  rules  for,  summarized,  315- 

317 
test  chart  for,  315 
Health    and    mind    culture,    list    of 

books  on,  474 
"Help  Yourself"  sales  plan,  366-367 
Herndon,  W.  H.,  quoted  on  analytic 

mind  of  Lincoln,  220 
Hill,  James  J., 
Great  Northern  Railway,  455-456 
studies  made  by,  221 
thrift,  374 
Hobbes,  the  philosopher,  mental  hab- 
its of,  213 
Hold-over  file,  50 
Honesty,  as  a  factor  in  co-operation, 

438-439 
Hotchkiss,       Professor,       short-cuts 

used  by,  164 
"How  to  Live,"  cited  for  food  tables, 

299 
How  to  Study,  16-18 
Hubbard,  Elbert,  quoted  on  thrift,  374 
Humor,  value  of,  354-355 
Huntington,     Collis     P.,    quoted    on 

value  of  humor,  355 
Hutchinson,   Dr.   Woods,   quoted   on 
use  of  gymnasiums,  351,  359 


Ideals,  of  business,  new,  448-458 
Ideas, 

development  of  new,  206-211 

testing  of,  233-247 

value  of,   in  business,  205-206 
Imagination, 

a  quality  of  empire  builders,  208- 
211 

compared  with  analysis,  232 


Importance,  a  test  of  ideas,  237 
Impression,   rules    of,   as    factors    in 

memory,  90-92 
Incentives  supplied  by  executive,  426 
Information  on  executive's  problems, 
sources  of,  231-232 
tested,  235-236 
Ingersoll,  William  H., 

daily  program,   form  of,   114,   117, 

127 
on  planning  work,  128 
Initiative, 
power  of,  202-205 
stimulation  of,  206-211 
Insull,  Samuel,  quoted  on  reasons  for 

non-success  in  business,  10 
Interruptions,    enemies    of    dispatch, 

143-145 
Introspection  versus  objectivity,  342- 

344 
Inventions, 
lessons  from  history  of,  205-206 
opportunities    in    developments   of, 
197-198 
Investing,  the  art  of,  382-388 
Investments, 
diversifying,  and  table  for,  384-385 
price  fluctuations   and   speculation, 

385-386 
rating  desirability  of,  382,  385-388 
slow  but  sure,  386-387 
sources  of  information  as  to,  383- 

384 
varieties  of,  382 


James,  William,  quoted  on, 
associations  as  factors  in  memory, 

92-93 
direction   of   attention   to   relevant 

circumstances,  91 
habit  formation,  184 
mental  and  physical  fitness,  206 
mental  retentiveness,  natural,  85-86 
ready  and  vaguer  memories,  100 
will,  power  of,  325-326 
Judgment, 

necessary     to     selective     thinking, 

217-218 
speeding  up  of,  274 

K 

Kahn,   Otto,  quoted  on  the  success- 
ful man  as  an  "irritant,"  456- 

457 


482 


INDEX 


Kehoe,  Sim  D.,  297 
Kent,  T.   R.,  quoted  on  motion  effi- 
ciency in  a  fire  house,  172-173 


Large-scale  enterprises, 

advantages  of,  422-423 

development  of,  418-422 
Launching  an  enterprise,  397-399 
Law, 

advantages  of  having,  401-402 

and  business  organization,  405 

books  on,  412-413 

business,  list  of  books  on,  473 

defects  of,  in  U.  S.,  406-407 

knowledge  of,  how  to  secure,  407- 
408 

of  agency,  404-405 

of  contracts,  403-404 

relation  of,  to  business,  402-403 
Lawyer, 

and  the  business  man,  409 

fees  of,  410-41 1 
Leadership,    qualities    necessary    for, 

465-466 
Learning  by  heart,  97 
Legal  problems,  400 
"Letters  from  a  Self-made  Merchant 
to   his    Son,"    quotation    from, 
on  investments,  388 
Lewis,  E.  St.  Elmo, 

figure  used  by,  164 

on  mind  building,  32 

on    service    of    the    new    business- 
man, 201 
Life  Extension  Institute,  291-296 
Lincoln, 

ability  of,  in  clear  discernment,  235 

analytic  mind  of,  220 

incidents      showing     self-improve- 
ment by,  468-469 

use  by,  of  test  of  reasonableness, 
236 
Litigation,  how  to  avoid,  408-409 
Loans,  391-394 
Logan,  James-,  quoted  on, 

co-operation,  437 

necessity    of    watching    small    de- 
tails, 22 
Loisette,  memory  systems  of,  86-87, 

94 
Loose  ends,  time  wasters,  141 
Loose-leaf  memo  system,  25-26 
Lough,  William  H.,  quoted  on  rules 

of  finance,  411-412 


M 

McElwain,    J.,    Franklin,    quoted    on 
solving  need  for  executives,  8 
McGowan,  Rear  Admiral,  quoted  on 
,  the  shipshape  office,  45-46 

Mail-order     sales     manager's     daily 

schedule,  a,  118 
Management, 
list  of  books,  470 
of    large-scale    business,    superior, 
423 
Manufacturer's  daily  schedule,  a,  116 
Maps,  use  of,  by  executives,  277-279 
Marketing, 
list  of  books  on,  471 
plan    for   large-scale   business,   423 
Mary  Elizabeth  Evans  candies,  story 

of,  365-367 
Mastication  of  food,  as  a  factor  of 

health  and  energy,  301-302 
Medulla  oblongata,  chief  of  the  rou- 
tine department,  181 
Mellen,  Charles,  studies  made  by,  221 
Memorizing,  conditions  conducive  to, 

102 
Memory, 
association,  rules  of,  as  factors  in, 

92-96 
culture,  chart  of,  loi 
dependent  more  on  system  than  on 

native  retentiveness,  86 
Edward  H.  Harriman,  based  on  as- 
sociation of  details,  95-96 
impression,  rules  of,  as  factors  in, 

90-92 
mechanical  aids  to,  24-32 
process  of,   four  steps  in,  90 
recall,  rules  of,  as  factors  in,  96-98 
recognition,  rules  of,  as  factors  in, 
98-100 
"Men  Who  Are  Making  America,"  by 
Forbes,  quotations  from,  on  H. 
C.  Frick,  371-372 
Mental  science,  pseudo,  358 
Merchandising,  development  of  large 

scale,  418-421 
Metchnikoff,  Russian  scientist,  quoted 

on  intestinal  bacteria,  307 
Micawber,  Mr.,  quoted  on  spending, 

379 
Mill,  John  Stuart,  five  rules  of  rea- 
soning by,  244-247 
Misused  power,  public  revolt  against, 
452-453 


INDEX 


483 


Mitchell,  Professor  Wesley  E.,  quoted 
on  cycles  in  business,  261,  266 
Mix,  Melville  W.,  quoted  on  twenty- 
five    per    cent    efficient    execu- 
tives, 6 
Mobilization,  of  business,  273 
Morgan,  J.   Pierpont, 
anecdote  on  handling  of  details,  22 
character  test  of,  391-392 
choice  of  partners  by,  395 
commercial  agent  for  British  gov- 
ernment, 434 
Mosso,     Angelo,     "Fatigue,"     chart 

from,  339 
Motion, 
efficiency  in  a  fire  house,  172-173 
study,    applied    to    office    arrange- 
ment, 57-60 
Muldoon,  physical  training  by,  315 
Murphy,     Carroll     D.,     day's     work 
schedule  by,  115,  119 

N 

National  Cash  Register  Co.,  origin 
of,  202-203 

Natural  resources,  opportunities  for 
exploration  of,  past  and  fu- 
ture, 196-197 

Nervous  system,  the  human,  correct 
utilization  of,  179-183 

New  York  Stock  Exchange,  quota- 
tions from,  383 

Note-books,  25 


Observation,  value  of  intelligent,  202- 

203,  211 
Office  equipment,  32-42 
desk,    the    executive     work    shop, 

.44-45 
devices  for  communication,  55-56 
efficient  layout  of,  56-60 
filing  systems,  47-50 
results  of  good  equipment  and  lay- 
out, 51 
One-man   stage  of  business,  passing 

of,  417,  424 
Open-mindedness,    a    factor    in    co- 
operation, 440 
Opportunities, 

in  business  for  profits,  196 
of  the   executive   in   U.   S.   Indus- 
tries, 7 


Organization, 
by  executive,  426 
essentials  of,  first,  436-437 
factory,   chart  of,  425 
good   and   poor,    chart   comparing, 

67 
point  of  view,  423-425 
processes  of,  four,  426-427 
OriginaHty,   development  of,  206-211 
Output,  chart  of,  for  Niccolai  Print- 

ing  House,  337 
Outsider's  fresh  viewpoint,  value  of, 

205-206 
"Overwork"  delusion,  358 


Partial   payment   plan,    investing   on, 

376 
Partnerships,  393-396 
Patterson,  John  H., 
analysis  by,  of  the  position  of  man- 
ager, 430 
business  methods  of,  213-214 
Peck,    Vice-president,    of    Link    Belt 
Co.,  quoted  on  scientific  man- 
agement, 231 
Persistence,  factor  in  driving  power, 

321 
Personality,  in  business,  4,  439-443 
Peters,    Ralph,     quoted     on     solving 

need   for  executive,  8 
Physical  energy,  293-319 
examples  of,  in  noted  men,  294 
need  of,  294 
sources  of,  298,  317 
Physical    exercise,    program    of,    for 

developing  vitality,  309-313 
Physical  spendthrifts,  297 
Pioneer  versus   followers,  204 
Plan  for  day's  work,  preparation  of 

a,    119-123,    126-131 
Planning  one's  work, 
importance  of,  107-110 
the   day's    work, 

seven  basic  questions  in,   iii 
test  charts  for,  132,  133 
Plans  of  the  executive,  426 
Playing  the  game,  446 
Poisons,  bodily,  305-309 
Pope,  Colonel,  and  first  bicycles,  203 
Posture   as    a    factor    in    developing 

vitality,  313-314 
Practical  ideas,  chart  for  measuring, 
229 


484 


INDEX 


Premises,  correctness   of,  as-  factors 

in  reasoning,  238-239 
Prices,    regularization    of,    in    large- 
scale  businesses,  423 
Printed  memo  sheet,  26 
Printer's  Ink,  420-421 
Private  secretary, 
conditions  and  equipment  for,  73 
daily  duties  of,  68 
day's  work  plan  for,  163 
money  value  of  services,  69-70 
qualifications  for,  71 
questionnaire  for  securing  best  re- 
sults from,  83 
selecting  a,  70 
standardizing  work  of,  79-80 
training  of,  after  employment,  74- 
81 
Problem-solving  type  of  mind,  220- 

222 
Procrastinator,   the,   138-139 
Production, 
large-scale,  421-422 
opportunities'  in   improvements  of, 
198 
Profit-making,  chart  for,  212 
Profits, 

dependent  upon  close  control,  251 
index  to  business  conditions,  264 
Prosperity,    possible    effects    of,    on 

executive,  461-462 
Protein,    correct    proportion    of,    in 

diet,  299 
"Public  be   damned"  policy,  450-451 
"Public  be  served"  policy,  453 


Railroad  rate  making,  secret,  449-450 

Reasonableness,   as   a   test   of   ideas, 
236-237 

Reasoning,  ability,  superior,  in  prac- 
tice, 228 
tests  of,  231-247 

Recall,  rules  of,  as  factors  in  mem- 
ory, 96-98 

Recognition,   rules  of,  as   factors  in 
memory,  98-100 

Record,   chart   showing  general  lay- 
out of  a  unit,  255 

Records,  control  through,  252-269 

Recreation,    as    a    factor    in    mental 
economy,   345-346 

Reflection,    as    a    balance    wheel    in 
creative   thinking,  217-218 


Regulation,     of     business     methods, 

452-453 
Relaxation,    as    a    factor    in    mental 

economy,  349-352 
Resolution,  need  of,  in  forming  new 

habits-,  185-186 
Revell,    A.    H.,    quoted    on    clothes, 

442-443 
Rhodes,  Cecil,  goal  set  by,  328 
Richardson,   J.   R.,   quoted   on    func- 
tion  of   the    manager,   429-430 
Ripley,     President,     of     Sante     Fe. 
quoted     on     executive's     chief 
business,  66 
Risks, 
business,   219-220 
systematic    elimination    of,    227 
Ritty,  Jacob,  conception  by,  of  cash 

register,  202-203 
Rockefeller,  John  D., 
as  a  borrower,  390-391 
early  savings  of,  375 
growth  of,  as  an  executive,  64 
means    of    developing    natural    re- 
sources, 196 
quoted  on, 
business  risks,  219-220 
co-operation,   436 
dangers  of  a  little  success-,  461- 

462 
facing  the  truth.  225 
mobilization  of  business,  273 
Roosevelt,  Theodore, 
method    of   handling   ca.lers,    154- 

155 
orderly  methods  of  work  of,  quo- 
tation   from   American  Maga- 
zine, 109 

Roosevelt   Conservation   Commission 
on  National  Vitality,  296-297 

Rosebery,  Earl  of,  quoted  on  thrift, 
380 

Ross,  Edward  A.,  quoted  on  specta- 
toritis,  311 

Routine,    and    cons-tructive    thought, 
195 

Ruling  passion,  as  factor  in  develop- 
ing personal  power,  324-326 


Sage,  Russell,  quoted  on  his  physical 

vitality,  309 
Salaries,    proportioned    to    value    of 

services,  S 


INDEX 


485 


Sales    manager's    daily    schedule,    a, 

116 
Sales,  campaign  of  Walter  H.  Cot- 

tingham,  1914  326-328 
Salesman's   "catechism,"  329-330 
Salesmen, 
chart   showing  records   of,    175 
use  of  maps  in  controlling,  277-278 
Sandow,  muscle  builder,  298,  314 
Saving, 
money,  chart   for  self-grading  on, 

381 
plans  for,  37S-38o 
Schedule, 
chart  of,  144 
general  office,  143 
interdepartmental,  chart  of,  146 
Schwab,  Charles  M., 
quoted  on  co-operation,  440-441 
studies  by,  221-222 
Science,    natural    and    social    list    of 

books  on,  474 
Scientific, 
management,  427-429 

definition  of,  231 
method,  list  of  books  on,  473 
mind,  223-225 
Securities,    for    investment,    383-386, 

387-388 
Self-deception,  danger  of,  224-225 
Self-discipline,  333 

Self-reliance,     importance     and     de- 
velopment of,  330-333 
Selling  periods  for  securities,  386 
Service, 
ideals  of,  in  business,  453-458 
law  of,  200-201 
Seven     devils     of     obstruction,     the, 

137-138 
Short-cuts,   160-176 
samples,  256-257 
Sickness,  due  to  erroneous  personal 

habits,  295 
Sleep,  habits  of,  347-350 
Smith,    Adam,    quoted    on    faith    in 

self,  330-331 
Social, 
consciousness,  development  of,  456- 

458 
engineer,  qualities  of,  45^ 
Sound,  undertaking,  368-369 
South    Improvement    Company,    440- 
450 


Speculation,    undesirability    of,     for 
man  in  another  business,  385- 
386 
Spending,  plans  of,  373-380 
Spirit  of  youth,  355-356 
Standard  Oil  "Trust"  in  1882,  64-65 
Standardization, 
importance  and  value  of,  13-14,  43, 

178-179 
of    graphic     methods,     rules     for, 

286-288 
of  work  of  private  secretary,  79-80 
Standardized    record    forms,   255-256 
Statistical, 
analysis,  258-259 
control,  251-271 
by   means    of    curves   shown   in 
figure  30,  284 
data,  chart   for  securing  of,  253 
methods,  254-259 
Stead,  William  T.,  quoted  on  work 

schedules,  128 
Step-saving,   162-163 
Stettinius,    Edward    R.,    quoted    on 
factors  in  war  industries,  434- 
436 
Study,   by  the  business   man,    12-13, 

460-476 
Subordinates,    must  bear   burden   of 

detail,  66,  69 
Successful    enterprise,    requisites   of, 

368 
Summarized  reports,  257-258 
Supervising  from  the  office,  161 
Supervision  by  the  executive,  427 
"Sure  thing"  delusion,  the,  219 
Surety  of  performance,  a   factor  in 

co-operation,  437-439 
Symbols,  as   short-cuts,    164-165,   166 
Syndicate,   for   financing  a  business, 

398 
Syracuse,  candy  business  started  at, 

3657367 
System,  cited,  115 
Systematic, 
and  accurate  procedure,  233 
arrangement  of  work,  112 
planning  for  day's   work,  illustra- 
tions of,  114-119.  ^23,  126 
Systematizing   the    day's    work,    test 
chart  for,  189 


486 


INDEX 


Tact,  a  factor  in  co-operation,  441- 

442 
Tarbell,  Ida  M.,  quoted  on  methods 

used  by  Rockefeller,  449-450 
Taylor,  Frederick  W.,  and  scientific 

management,  427,  429 
Team-work,  417-433 
Teeth  and  mouth,  sanitation  of,  306- 

307 
Telautograph,    use    of,    in    business 

office,  56 
Telephone,  its  use  and  abuse,  55 
Thorndike,  Professor,  experiment  in 

annual  psychology  by,   159 
Thrift, 
as  a  working  policy,  371-381 
value  and  practice  of,  373-380 
Tickler  systems,  illustrations  and  use 

of,  26-32 
Time,    means    for   preventing    waste 

of,  156-157 
Tobacco,  use  of,  305-306 
Trained  mind,  the,  223-228 
Training, 

employees,  440-441 
private    secretary    within    the    or- 
ganization, 74-81 
Trouble    man's    daily   program,    123- 

125 

u 

United  States  Steel  Corporation, 
earnings  of,  as  index  to  busi- 
ness conditions,  264 

Up-to-date  information,  257 


Vacations,     as     factors     in     mental 

economy,  346,  357-358 
Vail,  Theodore  N., 

experiments    of,    in    underground 

wiring,  203 
quoted  for  advancement  of  execu- 
tive, 10 
Vanderbilt,  Commodore, 
disregard  of  law,  451 
opportunities  seen  by,  204 
Vanderlip,  Frank, 
quoted  on  pressure  of  business,  391 
two-minute  interviews  of,  122 


Variables,  a  type  of  daily  activities, 

112-113 
Ventilation,  302,  304 
Volume    of   business,    data    on,   262- 

263 

W 

Wanamaker,  John,  quoted  on  initia- 
tive, 204-205 
Wants,  business  opportunities  in  sup- 
plying, 199-200 
War, 
directed    by    graphic    presentation, 

275-276 
effect  of, 
on  business  ideals,  448 
on  business  methods,  201-202 
Waste, 
American  habits  of,  373-374 
business,  467-468 

double,  in  misuse  of  nervous  sys- 
tem, 183 
of  below-par  condition,  295-297 
Waste-basket,  as  an  ally,  141 
Weed,  Thurlow, 
memory  system  of,  criticized,  89 
quoted  on  development  of  memory, 
88 
Weight,  and  underweight,  factors  in 

personal  health,  299 
Wharton,   P.   T.,   quoted   on   solving 
problem    of    need    for    execu- 
tives, 8 
Will-power,  330-336 
bizarre    schemes     for    developing, 

322-323 
culture  of,  chart  for,  336 
training  summarized,  334-335 
Willys,  J.  N.,  quoted  on  solving  need 
for  executives,  without  an  or- 
ganization, 8 
Wilson,  Thomas  E.,  quoted  on  causes 
for  executive  advancement,  9 
Winship,  Dr.,  297 

Witness,  competence,  of  the,  235-236 
Woolworth,  Frank,  experience  of,  in 

team-work,  417-418 
World's  Work,  The,  quoted  on  prob- 
lem  solution   in   practice,  226- 
227 
Worry,  the  policy  of  a   spendthrift, 
343-344 


1 


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